Q4 2016 Earning Results Presentation...Q4 2016 Performance Highlights 31 Dec 2016 (AED m) 31 Dec...

www.dxbentertainments.com

Q4 2016 Earning Results Presentation

14 February 2017

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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.

DISCLAIMER

CONTENT

Highlights of Q4 2016

Financial Results

Corporate and Operational Update

Financial Summary

3

01 / Highlights of Q4 2016

Dubai Parks and Resorts opening

5

31 October 2016

LEGOLAND® Dubai and Riverland™ Dubai

17 November 2016

Bollywood Parks™ Dubai

2 January 2017

Lapita™ HotelLEGOLAND® Water Park

16 December 2016

MOTIONGATE™ Dubai

6

The Jaan–e–Jigar show premiered on the 9th

December 2016 at the Rajmahal Theatre

Dubai Parks and Resorts opening

7

18 December 2016

Dubai Parks and Resorts Grand Opening

Destination formally inaugurated by HH Sheikh Mohamed

Celebration of the launch of the largest theme park destination in the region

Event was broadcast live, and over 200

international and local media in attendance

Q4 2016 Performance Highlights

31 Dec2016

(AED m)

31 Dec2015

(AED m)

Property and equipment, investment properties, inventories, advances and other receivables

10,289 5,309

Cash and other financial assets 2,525 3,317

Total assets 12,814 8,626

Financial HighlightsKey Highlights

Operational Period 31 October 2016 – 31 December 2016

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 December 2016 figures are audited.

8

Drawn down AED 3.4 billion of the AED 4.2 billion banking facility for Phase I of Dubai Parks and Resorts

323,489Visits

AED 63.4 millionTheme park revenue

AED 196Revenue per capita (theme parks)

31 Dec2016

(AED m)

31 Dec2015

(AED m)

Revenue 75.9 -

Profit/Loss (485) (111)

AED 74.5 millionTotal revenue

Tourism growth trend

WesternEurope21%

GCC24%

MENA11% South Asia

17%

Americas

6%North Asia and South-East Asia

9%

RUSSIA, CIS, EE

5%

Africa 5%

Australasia

2%

9

Top Source Markets For Visitors To Dubai(‘000 visitors YOY Jan – Nov 2016 | 15)

Jan-Aug 2016 2015 % change

1 INDIA 1,587 1,431 11%

2 KSA 1,524 1,424 7%

3 UK 1,120 1,077 4%

4 OMAN 983 893 10%

5 PAKISTAN 540 459 18%

6 US 534 541 -1%

7 CHINA 478 414 15%

8 IRAN 428 427 0%

9 GERMANY 408 411 -1%

10 KUWAIT 382 382 0%

15 RUSSIA 210 191 10%

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

Sources: DTCM and Mastercard Global Destination Index.

2015

2014 $10.9 Billion

$11.68 Billion

International overnight visitor spending in Dubai

Total Overnight International Visitors

13.34m YTD November 2016

Although overall tourism has only grown by 3.9% YOY, the top 10 source markets have grown by 7% YOY

02 / Financial Results

11

Summary Financial ResultsOperational period 31 October 2016 – 31 December 2016

AED 74.5 millionTotal Revenue

Theme parks

Retail and Hospitality

Others

The company commenced operations on 31 October 2016 when the first theme park opened its doors to paying guests.

Due to the staggered opening approach, not all parks were open during the November-December period which is covered in the summary results.

85%

7%8%

65%

32%

3%

Admissions

In-park spend

Others

Online 41%

Walk -in 33%

Tour operator 5%

Others21%

12

Theme Park Revenue31 October 2016 – 31 December 2016

AED 63.4 millionTheme Park Revenue

Visits breakdown by category

323,489visits

13

Audited Financial Informationfor the year ended 31 December 2016

Key highlights Total Assets AED 12,814 million

(Dec 2015: AED 8,626 million)

Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 31 December 2016 figures are audited.. Advances include interest receivable

AED 3.4 billion Drawn down of the AED 4.2 billion banking facility for Phase I of Dubai Parks and Resorts

AED 10.5 billionProject cost as at end of 2016, exact cost to be finalised by end of 2017 as various contracts get closed out and settled

AED 75.9 millionTotal revenue

AED 10.3 billionProperty and equipment, investment properties, inventories, advances and other receivables

AED 2.5 billionCash and other financial assets

Property and equipment

74.08%

Investment properties

4.96%

Inventories0.33%

Advances to contractors and other receivables

0.71%

Other financial assets7.75%

Cash and bank balances

12.01%

AED (485) millionProfit/Loss

14

Audited consolidated statement of financial position (as at 31 December 2016)


31 Dec 16 31 Dec 15

Audited(AED m)

Audited(AED m)

ASSETS

Property and equipment 9,465 4,652

Investment properties 634 283

Inventories 42 -

Due from a related party 21 -

Advances to contractors and other receivables 90 372

Derivative financial instruments 37 2

Other financial assets 990 2,856

Cash and bank balances 1,535 461

Total assets 12,814 8,626

EQUITY AND LIABILITIES

EQUITY

Share capital 8,000 6,322

Equity issue reserve - 4

Cash flow hedge reserve 37 2

Accumulated losses (639) (150)

Total equity 7,398 6,178

LIABILITIES

Bank facilities 3,204 1,258

Trade and other payables 2,212 1,177

Derivative financial instruments - -

Due to a related party - 13

Total liabilities 5,416 2,448

Total equity and liabilities 12,814 8,626

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

31 Dec 16 31 Dec 15A

ED

Mill

ion

s

Assets

Property and equipmentInvestment propertiesInventoriesDue from a related partyAdvances to contractors and other receivablesDerivative financial instrumentsOther financial assetsCash and bank balances

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

31 Dec 16 31 Dec 15

AE

D M

illio

ns

Equity and Liabilities

Total EquityBank facilitiesTrade and other payablesDerivative financial instrumentsDue to a related party

15

Audited consolidated statement of comprehensive income(for the year ended 31 December 2016)


(485)

(111)

(600)

(500)

(400)

(300)

(200)

(100)

-31 Dec 16 31 Dec 15

AE

D M

illio

ns

Loss for the period

31 Dec 16 31 Dec 15

Audited Audited

(AED m) (AED m)

Revenue 76 -

Cost of Sales (8) -

General, marketing and selling expenses (588) (142)

Other operating expenses (26) -

Interest Income 69 46

Amortization of borrowing costs (8) (15)

Loss for the period (485) (111)

Cash flow hedge gain / (loss) on fair value 36 3

Total comprehensive loss for the period (449) (109)

Loss per share:

Basic and diluted loss per share (fils) (0.067) (0.018)

16

Audited consolidated statement of cash flows (for the year ended 31 December 2016)

Movement in Cash(for twelve months ended 31 Dec 2016)


678 1,866

(4,947)

69

3,314

(6,000)

(5,000)

(4,000)

(3,000)

(2,000)

(1,000)

-

1,000

2,000

3,000

4,000

Mill

ion

s

OperatingInvesting-Other Financial AssetsInvesting-Property and equipment and Investment propertiesInvesting-OtherFinancing

31 Dec 16 31 Dec 15Audited Audited (AED m) (AED m)

Operating ActivitiesLoss for the period (485) (111)Adjustments for: - -Depreciation Expense 37 4 Interest Income (69) (46)Amortisation of borrowing cost 8 15 Provision for employees' end of service indemnity 3 -Decrease/(Increase) in advances to contractors and other receivables 302 (151)Increase in inventories (42) -Increase in trade and other payables 924 604

Net cash generated by / (used in) operating activities 678 314

Investing activitiesDecrease in other financial assets 1,866 1,294 Additions to property and equipment (4,689) (2,646)Additions to investment properties (258) (84)Interest received 69 47

Net cash (used in) / generated by investing activities (3,012) (1,389)

Financing ActivitiesProceeds from additional shares issued 1,678 -Share issue costs (9) -Proceeds from bank facilities 1,962 1,461 Borrowing costs paid (59) (72)Finance costs paid (131) (14)Movement in restricted cash (93) (97)Movement in a related party balance (34) (3)

Net cash (used in) / generated by financing activities 3,314 1,275 Net cash movement during the period 980 200 Cash and cash equivalent at the beginning of the year 364 164 Cash and cash equivalent at the end of the period 1,344 363

03 / Corporate and Operational Update

18

Sales and Marketing Update

Start of bulk ticket sales to corporate entities, schools and government

Activated local hotel touch points• 120 hotels via tour desks of Rayna Tour, Desert

Gate and Arabian Adventure • 6 partner hotel contracts signed

• Yas Viceroy• Anantara the Palm• Jebel Ali Golf Resort • Gloria Hotel• Movenpick JBR

• Soft launch of our shuttle service from partner hotel started 17th December

Showcased the destination to international travel partners

• Hosted 4 FAM trips for a total of 780 attendees from 7 markets

• Hosted 29 resort experiences for a total of 370 attendees from 8 markets

19

Source market representation and attendance targets

Canada

USA

Western Europe

Russia

Nigeria

China

Australia

India / Pakistan

Rest of the World / MICE

UK - Rep office- 2 ticket brokers - 10 Tour

operators

Germany / Swiss- Rep office- 8 Tour

operators

Russia - Rep office- 9 Tour

operators

China - Rep office- 9 Tour

operators- 2 OTA’s

India - Rep office- 9 Tour

operators

UAE- 82 DMC’s

Africa- 8 Tour

operators

Sales and Marketing Update…continued

20

The total awareness levels of individual parks and DPR as a destination has increased over the year and during Q3in specific across our three key source markets.

Future intention to visit has also shown steady growth in line with rising awareness levels.

Bollywood Parks™ Dubai has the highest saliency among all the parks across top source markets followed byLEGOLAND® Dubai and MOTIONGATE™ Dubai.

In the UAE the Dubai Parks and Resort TV campaign has garnered high awareness; which is supported by strongperformance awareness of Print and Outdoor campaigns as well.

Sales and Marketing Update…continuedRising brand awareness in 2016 across key source markets

0%

10%

20%

30%

40%

50%

60%

70%

80%

May '16 July '16 Nov '16

UAE

BWP LLD MGD DPR

0%5%

10%15%

20%25%30%35%40%45%


KSA

BWP LLD MGD DPR

0%

5%

10%

15%

20%

25%

30%

35%

40%


India

BWP LLD MGD DPR

21

Theme Park Operations Update

Staggered soft launch and opening of parks to the public enabling the theme park operations team to:

• Enhance guest services following collation of feedback

• Update operational training• Utilise staff from different parks to assist

during peak hours/days • Test and asses opening hours

Successfully completed operational training of all theme park employees

Successfully completed all required rehearsals and training for the live entertainment performers

22

Retail and Hospitality Update

Lapita™ Hotel opened to the public on the 2nd January 2017

28 units opened in Riverland™ Dubai during 2016, including the opening of Irish Village, the first licensed outlet. Remaining units due to open through February, March and April.

Riverland™ Dubai leasing update

84% of available space leased

51 lease proposals signed

141% projected 2017 revenue achieved

23

Human Resources Update

Employee breakdown(as at end of December)

3,184 employees from 88 countries

68% Male

32% Female

Shared services and corporate

15%

Theme parks71%

Retail and hospitality14%

24

MOTIONGATE™ Dubai

25

Bollywood Parks™ Dubai

26

LEGOLAND® Dubai andLEGOLAND® Water Park

27

Opening schedule for remaining attractions

Experience Attraction Expected opening

LEGOLAND® Dubai Fully operational

LEGOLAND® Water Park Fully operational

Bollywood Parks™ Dubai Don The Chase March

MOTIONGATE™ Dubai Kung Fu Panda: Unstoppable Awesomeness March

Shrek’s Merry Fairy Tale Journey April

Dragon Gliders April

The Swinging Viking (completed but not open to the public) April

Camp Viking (completed but not open to the public) April

Phase II The Hunger Games - Capitol Bullet Train April

Phase II The Hunger Games - Panem Arial Tour May

28

Six Flags Dubai update

Detailed design ongoing, Ride procurement

Seven rides contract award are in final stage, Thirteen additional rides RFP issued;

Infrastructure BOH Tender package was issued to potential bidders 132 KV Substation tender on-going

29

04 / Conclusion

30

Conclusion

The Company has delivered the largest integrated theme park destination in the region, despite challenges and the complexity of the project

Visitor numbers and revenue achieved during the 2 operational months of 2016 are not indicative of future visitations or earnings potential

Sales efforts are still in the ramp-up phase, in line with the opening of the destination as additional sections and rides open to the public. Tour and travel sales is the core focus to ensure delivery of stable visitor numbers

Q2 2017 will be the first operational quarter for the company with the whole destination including all attractions open to the public. The focus is therefore to learn and improve in Q1 2017 to deliver an improved customer experience

Delivery of a complex destination

Long-term tourism and visitor growth potential

Sales and Marketing key

Learning and ramp-up phase

Contact us

31

Investor 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 5114 998

[email protected]

www.dxbentertainments.com

Download the DXB Entertainments IR App

32

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