DXB Entertainments PJSC - Investor Presentation September | 2017 - DXB ...
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DXB Entertainments PJSC Investor Presentation September | 2017
Disclaimer
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 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
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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
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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.
2
Company Overview
3
About DXB Entertainments PJSC
DXB Entertainments PJSC is a Dubai headquartered Leisure and Entertainment Company
listed on the Dubai Financial Market under the trading symbol DXBE.
DXBE is the owner of Dubai Parks and Resorts, the regions largest integrated theme park
destination, with Five Theme Parks*, Two Hotels*, and One retail and dining facility all
spread over 30.6 million sq.ft of land, with an estimated AED 13.2 billion in development
costs.
DXBE also manages 6 Dubai-based mid-way attractions in addition to a chain of cinemas,
all owned by Meraas.
8.0b 5.2b 6.2b
AED 8 billion equity AED 5.2 billion financing AED 6.2 billion market cap
DXB Entertainments has DXB Entertainments PJSC is
DXB Entertainments has raised AED 4.2 billion through listed on the Dubai Financial
raised AED 6.3 billion in a financing facility for Phase I Market and has a market cap
equity through an IPO in 2014, for DPR, and an additional of AED 6.2 billion as at 31 July
and an additional AED 1.7 AED 1 billion for Phase II. 2017.
billion through a rights issue
in 2016.
* Phase II expansion, Six Flags Dubai opening in 2019 and LEGOLAND Hotel after 2018. LEGO, the LEGO ® logo and LEGOLAND ® are trademarks of 4
the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.
DXB Entertainments Since Inception
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
AED 4.2b AED 0.9b
Secured AED
Secured AED 4.2
Agreement
993 million in
billion syndicated financing facility with Meraas to
finance facility for Six Flags manage
select L&E
assets
AED 2.6b AED 1.7b
Successful Rights issue for LEGOLAND ® Hotel
completion of Six Flags Dubai Dubai to open
successfully adjacent to
AED 2.6 billion
LEGOLAND ® Dubai.
IPO completed
Company moves
into operational DreamWorks zone in
phase as MOTIONGATE unveiled to the
Agreed major LEGOLAND® Dubai public
partnerships with and Riverland™
globally Broke ground on Dubai opened 31
Planned to open in
Dubai Parks Dubai Financial Market listing recognised Six Flags Dubai October late 2019, Six Flags
and Resorts brands, including
Ground work commenced Dubai will be the
project Lionsgate
on site fifth theme park at
announced
the Dubai Parks and
Launched ‘Helmi’ DPR’s first ride – Resorts destination,
scholarship The Dragon and will include
programme, Coaster DXB Official over 20 rides and
offering Emiratis installed at Entertainments inauguration of Lapita Hotel and LEGOLAND attractions for all
training in LEGOLAND ® name change DPR on 18th Water Park open to the public ages across six
Orlando, USA Dubai completed December on 2 January themed zones.
2 0 1 2 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 THE FUTURE
CUMULATIVE PLANNED
Project Spend AED 2.6B AED 5.8B AED 10.5B Project Spend AED 2.7B
5The largest leisure and entertainment company in the region
Family
Entertainment Retail and
Theme Parks
Centers 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 of 6
the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.Shareholding structure
Shareholder composition
As at 31 July 2017
A Dubai-based holding company
established in 2007, with operations and
assets in the UAE and overseas
Has access to a huge land bank in prime
locations throughout Dubai
Has launched several projects in the
tourism, retail, hospitality, leisure and
entertainment sectors
Is focused on introducing new and unique Meraas 52%
products to the market
Qatar Holding 11%
Kuwait Investment Authority 5%
Is committed to the success of DXB Institutional 22%
Entertainments Retail 10%
Sources: Meraas, Company information, Other public sources. Shareholder structure as at 31 July 2017. 7
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figuresBusiness Units
8Theme Parks
DXB Entertainments owns five theme parks at Dubai Parks and Resorts
27 rides and attractions 40 rides and attractions 20 slides and attractions
Largest Hollywood movie inspired themed Where LEGO® bricks come to life, the ultimate The region’s only water park designed for
park in the region, targeting all age groups and theme park for families with children aged 2-12, families with children aged 2-12, with over 20
nationalities. IP partners include DreamWorks, with over 15,000 LEGO® models made from 60 LEGO themed water slides and attractions.
Colombia Pictures, The Smurfs and Lionsgate. million LEGO® bricks.
Operated: Parques Reunidos Servicios Centrales Operated: Merlin Entertainments plc Operated: Merlin Entertainments plc
Dubai International
Airport
16 rides and attractions
63
The world’s first Bollywood movie themed park,
focused on action, dance, romance and flavours
based on some of the biggest Bollywood km
blockbusters.
Operated: Parques Reunidos Servicios Centrales
20
16
20 rides and attractions km
The regions first Six Flags themed park which
will offer high thrill entertainment for all ages km
Dubai World Central –
groups when it opens in 2019.
Al Maktoum International Airport
Operated: Six Flags management agreement
9Family Entertainment Centers
DXB Entertainments’ Family Entertainment Centers unit manages select Meraas
owned leisure and entertainment offerings across the city of Dubai.
Indoor video gaming zone which includes Indoor interactive games and play area Outdoor water recreational venue
virtual reality shooting, virtual reality for kids between the age of 2 to 10 years offering various activities for toddlers and
racing, time-warped arcade and network old kids
games Location: The Beach
Location: City Walk / The Beach
Location: City Walk
Dubai International
Airport
Gaming experience beyond virtual reality
combining physical set with real-time
interactive effects Dubai International Airport
Location: To be confirmed
Dubai World Central –
Al Maktoum International Airport
Bio-dome housing a giant indoor
ecosystem and 3,000 plants and animals
Location: City Walk
10Retail and Hospitality
HOSPITALITY CINEMAS RETAIL & DINING
Over 750 rooms across two hotels 3 Cinemas 234,000 sq feet of GLA
Lapita™ Hotel operated by the Marriott Group Owned by Meraas, ROXY cinemas is a chain of With over 50 units leased out to third party
with over 500 rooms. The LEGOLAND® Hotel is cinemas with over 25 screens across three tenants, Riverland™ Dubai is a themed retail
a 60:40 JV with Merlin Entertainments, locations in Dubai and dining destination.
currently under development
Location: City Walk / The Beach / Box Park Location: Dubai Parks and Resorts
Location: Dubai Parks and Resorts
Dubai International
Airport
63
km
20
16 km
km
Dubai World Central –
Al Maktoum International Airport
11Outlook and Strategy
12Updated organisational structure
CHIEF EXECUTIVE OFFICER
Mohamed Almulla
Support Functions
FAMILY
RETAIL & FINANCE/ CORPORATE
THEME PARKS ENTERTAINMENT MARKETING
CENTERS
HOSPITALITY STRATEGY & BD SUPPORT
GM GM GM CFO VP VP
Ahmad Hussain TBD Ahmed AlRayyes John Ireland TBD Hani Soubra
Mohamed Almulla, CEO
Mohamed joins from Arab Media Group, where since 2008 he held the position of CEO overseeing all aspects of the Group whose operations
comprise Arabian Radio Network, Done Events and Global Village.
John Ireland, CFO
John joins from Arab Media Group and previously Rotana Media Group where he held CFO positions, overseeing the financial, strategic and
legal aspects of the Group’s operations. Prior to arriving in the Middle East John held finance and strategy roles at 21st Century Fox focusing
across the group’s operations in Europe, Asia, and the Middle East.
Ahmad Hussain, GM of Theme Parks
Ahmad Hussain Bin Essa was previously the CEO of Global Village, the region’s premier cultural and family entertainment destination. He is
currently a board member of IAPPA.
Ahmed AlRayyes, GM of Retail and Hospitality
Ahmed AlRayyes previously held the position of Chief Commercial Officer at Global Village, the region’s premier cultural and family
entertainment destination.
Hani Soubra, VP of Marketing
Hani Soubra is a media and communication specialist and the former BBC World's Regional Director MENA & Pakistan.
13Strategy
Become the regions leading operator of leisure and entertainment with a
portfolio of over 15 offerings across Dubai
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 ensure
messaging 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
1401 - Restructure DXB Entertainments
Structure DXBE for success
Align organization structure with Drive efficiencies and leverage Utilise best-in-class
strategic corporate goals synergies management capabilities
Alignment of management and Similar assets to be clustered together Leverage management and
organizational structure with P&L to create operating, revenue and cost operational capabilities of operators and
responsibility efficiencies operational teams in new decentralized
structure
Position DXBE as the leading regional operator of leisure and entertainment assets
Owner of DPR Manage Meraas L&E assets
Leverage the ownership of DPR, Undertake the management of key
utilizing its IP rights, and create Meraas L&E assets with the
cross promotional sales, marketing possibility of adding future flagship
packages and synergies pipeline assets
1502- Drive footfall from resident market
01 02 03
Drive footfall and visitation by Develop and implement strategy Simplify and maintain consistent
targeting the resident market for targeting the GCC and the wider pricing to create clear consumer
MENA region, define GCC as a core messaging and avoid confusion
residential market
Resident market will be the key Focus on driving repeat visitation DXBE will introduce a simplified
driver of admissions and visitation from the Saudi market as well as pricing mechanism focused on
in Q42017 and FY2018 generating activating the Saudi tour and travel driving the residential market,
~65% of all visits market encouraging multiple visitations and
driving footfall. Discounting to be
kept to a minimum, only limited
tactical promotions to be conducted
1602- Winter season pricing
Theme park ticket pricing has been simplified and
focused on driving repeat visitation from the resident
market
Ticket price Ticket price Resident rate
Single day ticket
($) (AED) (AED)
MOTIONGATETM Dubai 64 235 165
Bollywood ParksTM Dubai 48 175 95
LEGOLAND® Dubai 64 235 165
LEGOLAND® Water Park 64 235 165
Annual pass Ticket price (AED)
TM
MOTIONGATE Dubai 275
LEGOLAND® Dubai 275
Any two parks 430
All parks 525
Regional
IMG World of Adventure 66 245
Ferrari World 75 275
Wild Wadi 75 275
Yas Waterworld 68 250
Aquaventure 70 260
Ski Dubai 91 335
At the Top – Burj Khalifa 55 - 136 200 - 500
International
Magic Kingdom 115 422
Disneyland Tokyo 65 238
Disneyland Anaheim 110 404
Epcot 107 392
Disneyland Paris 80 291
Universal Studios Singapore 56 199
LEGOLAND Malaysia 34 128
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 1703-Tourism growth trends
Visitors from top 10 source markets Jan-Jul 2017 2016 % change
Total visitors Jan-Jul 2017 Jan-Jul 2017 (’000 visitors) India 1,180 978 21%
Saudi Arabia 904 921 -2%
9.20m UK
Oman
712
506
689
695
3%
-27%
Up 9.5% YOY China 466 304 53%
Pakistan 372 340 9%
USA 371 348 7%
Iran 317 257 23%
Germany 287 271 6%
Kuwait 247 244 1%
Total 5,362 5,047 6.24%
Russia 245 125 96%
7% – Russia, CIS, EE
(Eastern Europe)
20% – Western Europe
6% – Americas 11% – North Asia and
South-East Asia
20% – GCC
18% – South Asia
11% – MENA
5% – Africa
2% – Australasia
Source of visitors by region (% in Jan-Jul 2017)
Source: Department of Tourism and Commerce Marketing (DTCM) 1803- Activate core markets through B2B channels
UAE tourism contribution to GDP, 2016
UAE’s Travel & Tourism’s total
Leisure spending 77% Foreign tourists 74% contribution to GDP, 2016
Business spending 23% Domestic tourists 26%
43.3b USD
Germany/Swiss
Rep Office
8 Tour operators
United Kingdom
Rep Office Russia
China
2 ticket brokers Rep Office
Rep Office
10 tour operators 9 Tour operators
9 Tour operators
2 OTAs
UAE India
82 DMCs Rep Office
Africa
8 tour operators 9 Tour operators
Source market representation
1904 - Create consistent brand message
Formulate a consistent brand message, identify core target market for each park and
ensure messaging is appropriately tailored for each experience
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
202017 expectations
Alignment of organizational and management structure to leverage core strengths and realise
synergies
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
21Q2 2017 Performance
22Summary performance highlights
(AED millions)
2016 Q1 2017 Q2 2017 YTD 2017
Visits 323,489 586,355 414,454 1,000,817
Revenue 76.0 159.9 119.6 279.5
Theme Park Revenue 63.4 85% 125.4 78% 86.5 72% 211.9 76%
Revenue per capita 196 213.9 209 211.7
Admissions 65% 68% 63% 66%
In-park spend 32% 24% 32% 27%
Others 3% 8% 5% 7%
Retail Revenue 5.2 7% 14.4 9% 8 7% 22.4 8%
GLA leased 84% 84% 84% 84%
Leasing 76% 51% 67%
Non-leasing 24% 49% 34%
Hospitality Revenue - - 10.4 7% 11.4 10% 21.8 8%
Average occupancy 21% 27% 24%
Average daily rate 795 590 677
Accommodation - 70% 64% 67%
Other - 30% 36% 33%
Other Revenue 7.4 8% 9.6 6% 13.7 11% 23.3 8%
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 and 30 June 2017
figures are unaudited.
26Q2 Revenue breakdown (1 April – 30 June 2017)
Totalrevenue Theme parkrevenue Retail revenue Hospitality revenue
AED 119.6m AED 86.5m AED 8m AED 11.4m
Theme park 72% Admissions 63% Leasing 51% Accommodation 64%
Retail 7% In-park spend 32% Non-leasing 49% Others 36%
Hospitality 10% Others 5%
Others 11%
Q2 Visits Q2 GLA leased Q2 Average occupancy
414,454 84% 27%
Q2 Revenue per capita Q2 Average daily rate
AED 209 AED 590
Theme parks
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. 24Visits breakdown
Total Visits
414,454
April-June 2017
Visits breakdown (bycategory)
Walk-in 38%
Online & call center 31%
Tour operator 14%
Others 17%
Note: Others include Schools, Corporates, Annual passes, VIPs and
Complimentary passes
Key visitation factors:
Holy month of Ramadan: 26 May – 24 June
AED 95 all parks between 8pm-12am during Ramadan.
Summer pricing offer:
AED 195 per park inclusive of all you can eat offer
AED 265 two parks inclusive of all you can eat offer
25Summary financial results
Revenue
Q1 2017 Q2 2017 YTD 2017
AED millions AED279m
Revenue 160 120 279
Cost of sales (13) (20) (34)
Operating EBITDA
Gross profit 147 99 246
General, administrative and operating expenses (334) (284) (618)
AED(247)m
Marketing and selling expenses (41) (38) (78)
Interest (expense) / income (43) (52) (95)
Other expenses (21) (11) (32) Operating EBITDA (adjusted)
Loss for the period
Other comprehensive loss
(292) (286) (578)
AED(186)m
Excluding AED 61 million in pre-operating
Cash flow hedge – gain / (loss) on fair value 4 (22) (18)
expenses
Total comprehensive loss for the period (287) (308) (596)
General, administrative and operating expenses
For the six month period ended 30 June 2017
Salaries and other employee benefits 32%
Depreciation 38%
Utility 9%
Supplies, communication and IT 6%
Repairs and maintenance 4%
Rent 4%
Others 7%
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 2017 figures are
unaudited.
26Contact Us
Investor Relations Contacts DXB Entertainments PJSC
Marwa Gouda Sheikh Zayed Road, opposite the
Head of Investor Relations Palm Jebel Ali, Exit 5, Saih Shuaib
Abdulrahman Al-Suwaidi
Investor Relations Officer Tel: +971 4 8200 820
Fax: +971 4 8200 819
IR@dxbentertainments.com contact@dxbentertainments.com
www.dxbentertainments.com/investor-relations www.dxbentertainments.com
27DXB Entertainments IR App
Our new Investor Relations App is available for download on the
iTunes App store and the Google Play store!
28Appendix I
Management and Board
29Senior management
Mohamed Almulla • Appointed CEO of DXB Entertainments in June 2017.
Chief Executive Officer • 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 Ireland • Appointed CFO of DXB Entertainments in June 2017.
Chief Financial Officer • 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 Hussain • Joined DXB Entertainments in August 2017.
GM of Theme Parks • 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.
30Senior management
Ahmed AlRayyes • Ahmed AlRayyes joined DXB Entertainments in July 2017.
GM of Retail and • He is a seasoned professional with a long track-record of successfully implementing Commercial Partnerships,
Hospitality 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 Soubra • Joined DXB Entertainments in August 2017.
VP of Marketing • 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, • Over 15 years experience in investor relations and financial marketing. She previously held the position of Head
CIRO of Investor Relations at I2BF Global Ventures, a boutique investment management firm.
Head of Investor • In 2003 she joined Man Group in Switzerland and during her six year tenure held different positions in
Relations
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
31Board of Directors and board committees
Nomination and Board of Directors by type
Remuneration
Name Nationality Independent Audit Committee Committee
Non-Executive - 5
Abdulla Al Habbai UAE
Executive -1
Raed Kajoor Al Nuaimi UAE -3
Independent
Abdul Wahab Al-Halabi UAE
Edris Alrafi UAE Board of Directors by nationality
Cristian Viorel Gheorghe Romanian
Fahad Kazim UAE UAE National 5
Dennis C. Gilbert USA (Chairman) Other Nationalities - 4
Steven D. Shaiken USA (Chairman)
Abdulla Al Habbai • Group Chairman of Meraas Holding and Chairman of Dubai Holdings.
Chairman, Non-executive • Mr. Al Habbai is also Chief Executive Officer of the Engineering Office since 2005 and the Chairman of Dubai Hills, Dubai Valiant
Director 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- • Abdul Wahab Al-Halabi is the Group Chief Investment Officer of Equitativa, a diversified financial services group specialising in the
Halabi development of REITs in emerging markets.
Non-executive Director • He was previously the Group Chief Investment Officer of Meraas Holding group. Mr. Al-Halabi has more than 18 years’ experience in the
real 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 • Raed Kajoor Al Nuaimi is the former Chief Executive Officer of DXB Entertainments PJSC
Nuaimi • Previously, he was the Chief Leisure and Entertainment Officer at Meraas Holding
Non-executive Director • 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
32Board of directors continued
Edris Alrafi • Mr Alrafi is the CEO of Dubai Holdings and CCO at Meraas Holding. He brings more than 13 years of experience in investment banking,
Non-executive Director 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 • Mr Gheorghe is the former Chief Financial and Investment Officer at Meraas LLC. Bringing with him over 18 years of banking experience
Gheorghe working globally across several industries.
Non-executive Director • Prior to joining Meraas, Cristian served as Investment Strategist at Citi Private Bank in Geneva where he led the buy side advisory to a
high profile, multibillion-dollar franchise relationship of the bank in Saudi Arabia. He is a board member at Yvolve LLC, MD Health and
Wellness 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 a
Bachelor’s degree in Economics from the Academy of Economic Studies in Bucharest.
Fahad Kazim • He is an Independent Advisor to the to the Group Chairman at Meraas
Independent Non- • Previously the Chief Commercial Officer at Meraas Holding where he was responsible for the business development and asset
executive Director 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. Gilbert • More than 45 years of experience in the theme park and attraction business
Independent Non- • Has held various senior management positions at Sea World of Ohio, Resorts World Sentosa (Singapore), Stone Mountain Park (Atlanta),
executive Director 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. Shaiken • Provides consulting services to major companies in the travel and leisure industry including Disney, Universal, Aramark etc.
Independent Non- • More than 40 years of experience in the destination branded entertainment arena
executive Director • 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
33Appendix II
Summary Financials for the period ended 30 June 2017
34Summary financials
Condensed consolidated statement of Condensed consolidated statement of profit
financial position or loss and other comprehensive income
As at 30 June 2017 For the six month period ended 30 June 2017
30 Jun 17 31 Dec 16 Six months period
ended 30 June
Unaudited Audited
(AED m) (AED m) AED million 2017 2016
ASSETS Unaudited Unaudited
Property and equipment 9,451 9,465 Revenue 279 -
Investment properties 623 634 Cost of Sales (34) -
Investment in a Joint Venture 18 -
Gross profit 245 -
Inventories 50 42
Due from a related parties 25 21 General,administration and operating expenses (618) (89)
Trade and other receivable 155 90
Marketing and selling expenses (78) (22)
Derivative financial instruments 19 37
Other financial assets 618 990 Interest (expense) / income (95) 31
Cash and bank balances 1,502 1,535 Other expenses (32) -
Total assets 12,461 12,814
Loss for the period (578) (80)
EQUITY AND LIABILITIES Cash flow hedge – loss on fair value (18) (55)
EQUITY
Share capital 8,000 8,000 Total comprehensive loss for the period (596) (135)
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
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 2017 figures
are unaudited. 35Condensed consolidated statement of cash flows
For the six month period ended 30 June 2017
AED million Period ended 30 June
2017 2016
Unaudited Unaudited
Cash flows from operating activities
Loss 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 activities
Decrease / (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 activities
Proceeds 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
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 2017 figures 36
are unaudited.Appendix III
DPR Phase I and Phase II projections based on 2014 IPO
prospectus and 2016 Rights Issue documents
37Projections DPR Phase I and Phase II
Project funding (AED m)
4,214
10,536
Phase I
6,322
Equity Funding Debt Financing Phase I
Project funding (AED m)
993 Debt facility secured from
2,671 Abu Dhabi Commercial
Phase II
Bank, Dubai Islamic Bank
and Sharjah Islamic Bank.
1,678
Equity Debt Phase II
Funding Financing
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.
38Projected theme park visits and market penetration
UAE theme park addressable market Theme park visits and market penetration1
(millions of potential visitors) (2013-2022F visits in millions)
UAE Resident Population Income and Drive Qualified
45.4 43.8 Orlando Denmark Japan Hong Kong Singapore
UAE International Tourists (VFR) 40.2
9.2 Penetration rate
UAE International Tourists (Hotel Guests) 35.2 9.4 90% 42% 37% 24% 18%
32.5 8.9
30.1 4.5 No of parks 7 2 5 2 1
28.4 8.7 4.3
26.6 3.9
23.4 25.0 8.4
7.8 8.1 3.3
7.5 3.0
7.0 7.2 2.8
2.4 2.6
2.3 2.2 31.7 30.1
27.3 Total market penetration potential 44%
21.0 23.1 37%
16.8 18.0 19.2
14.1 15.5 Actual penetration (assumed 38%
28%
in business plan)
19.8
2013 2014 E 2016F 2017F 2018F 2019F 2020F 2021F 2022F
2015F
Theme Park Visits 16.9
• Total UAE theme park addressable market consists of
Potential 17.4
14.2
– Hotel tourists 15.7
12.6
– UAE residents
11.2
– Visiting friends and relatives (“VFR”) 10.1 12.1
9.1
• UAE theme park demand estimated based on penetration rates of
8.1
comparable markets 7.6 9.8 12.8
8.4 11.2
• Large variation in penetration rates based on maturity of theme park 7.8
offering
6.6
• Dubai Parks and Resorts will serve the majority of the pent up theme 3.7 6.1
park demand (number of visits does not include visits to the
0.8 1.0 1.5
Bollywood Parks’ Rajmahal theatre and to the LEGOLAND® Water 0.9 4.3 4.5 4.7
2.2 2.3 3.2
Park) 0.8 0.9 1.0
• DPR offering appeals to multiple customer segments 2013 2014 E
2015F 2016F 2017F 2018F 2019F 2020F 2021F
• World class IPs and differentiated offering 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 figures
Notes: 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 39
includes Six Flags Dubai starting 2019.Financial projections summary – DPR Phase I
Total visits per year (million) Theme park revenue by category (million)
2,573
2,289
2,038 616
550
492
76% of
theme park
9.1 10.3 revenue
7.9 1740 1957 generated
6.7 7.2 1546 from tickets
2017F 2018F 2019F 2020F 2021F 2017F 2018F 2019F
AED 304 AED 318 AED 324 Revenue per capita
Tickets In-park spend
Revenue by entity (AED million) Financial performance (AED million)
3,086
2,755 172 63 2017 2018 2019 CAGR
2,447 153 62 278
135 251 Visits 6.7 7.2 7.9 11.3%
220 54
Growth 7.5% 9.7%
Theme Revenue 2,447 2,755 3,086 12.3%
2573 park
2038 2289 Growth 12.6% 12.0%
revenue
is 83.4%
EBITDA 605 726 845
Margin 24.7% 26.3% 27.4%
2017F 2018F 2019F Net Income (36) 108 249
Theme parks Lapita Hotel Riverland Dubai Other
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.
40Financial projections summary – DPR Phase II
Total visits per year for Six Flags Dubai (million) Six Flags Dubai revenue by category (million)
1,043 1,048
893
229 230
197
78% of
theme
3.3 3.2 park
2.9 revenue
187 814 818 generate
696
d from
tickets
42
0.6 145
2019F 2020F 2021F 2022F 2019F 2020F 2021F 2022F
AED 312 AED 308 AED 316 AED 327 Revenue per capita
Tickets In-park spend
Uses of funds (AED 2,671 million) Financial performance (AED million)
Financing, corporate and others
cost Business 2020F 2021F 2022F CAGR
286 development and
issue expenses 1 Visits 2.9 3.3 3.2 5.1%
Land cost 65 Growth 13.4% -2.6%
390
Revenue 893 1,043 1,048 8.3%
Growth 16.8% 0.5%
Infrastructure EBITDA 296 371 365
cost Margin 33.2% 35.6% 34.8%
473
Net Income 134 209 204
Construction cost
1,457
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. 41Summary projected financials – DPR Phase I
AED million
Forecasts as of the offering memorandum issued in November 2014
2015F 2016F 2017F 2018F 2019F
Income statement
Revenue - 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 sheet
Assets
Total 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
Liabilities
Total 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 statement
Cash 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)
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 figures
Notes: 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. 42Appendix IV
About Dubai Parks and Resorts
43About 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
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 4444
the LEGO Group. ©2015 The LEGO Group. LEGOLAND IS A PART OF MERLIN ENTERTAINMENTS plc.DPR location
Strategically located on Sheikh Zayed
Road mid way between Dubai and Abu
Dhabi International Airports
• 20 km from Al Maktoum International Airport
• 63 km for Dubai International Airport
• 68 km from Abu Dhabi International Airport
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
45Mitigating the potential impact of seasonality
• 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
Weather can be countries that experience high levels of precipitation (Denmark, France, etc.) or humidity (Singapore, etc.)
of concern for experience a negative impact on attendance
theme
• Temperature is a potential concern for Dubai Parks and Resorts - Dubai is hotter than other theme park
park attendance
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
The DPR master plan
Mitigating the
has been designed to
DPR heat strategically address
concern heat concerns
78% 43% 69%
% attractions indoor and air conditioned
Integrated Indoor and air conditioned Adjustment of operating
strategy for State-of-the-art Landscape and
queuing for rides; any hours during summer
dealing with the integrated cooling architecture includes
additional outdoor months to address peak
heat systems significant shading
queuing has fans day temperatures
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 46
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