Slide 1: Interim Results: 6 Months to June 2020
Slide 2: Disclaimer
The information contained in this document (“Presentation”) has been prepared by Escape Hunt plc (the “Company”). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for infor
Slide 3: 1 Overview
Slide 4: Overview of period under review and post period end
" Overall we have been encouraged by trading in the period post lockdown and we are making good progress against the strategy laid out during the fundraise. We are aware of the growing rate of COVID-19 infections and the possibility of further restrictions which may impact our progress, but remain c
Slide 5: About Escape Hunt
ABOUT ESCAPE HUNT
Slide 6: What is an escape game: definitions
Def: An adventure packed with excitement where you and your teammates leap into new worlds, taking on pulse-racing missions and challenges in an incredible entertainment experience against the clock. Def: The act of leaving behind ordinary reality to do something extraordinary as teams of heroes adv
Slide 7: Studio, franchise footprint and UK estate
Established experiential ARGENTINA KUWAIT QATAR UNITED KINGDOM Buenos Aires x2 Kuwait Qatar Birmingham (Central and Resorts World) design and production studio AUSTRALIA LUXEMBOURG SAUDI ARABIA Bristol Adelaide Luxembourg Jeddah Leeds Large franchise footprint Brisbane NETHERLANDS SINGAPORE Edin
Slide 8: UK site economics: revenue, costs and build cost
Revenue Costs 4 players @ £22 incl VAT Staffing c.35% of revenue 5 - 6 rooms per site1 Rents, rates, service charge @ £7k - £9k per site per month Median 40% occupancy (8 sessions per day, 7dpw) Marketing c.£5k per month Additional ‘outdoor’ revenue Utilities and maintenance c.£2k pe
Slide 9: Summary of Financial Statements
SUMMARY OF FINANC STATEMENTS
Slide 10: Income statement summary
Six months to June Strong revenue growth pre COVID £m 2020 2019 Change ⎼ Overall sales (£1,304k) were 41% lower than 2019, driven by Revenue 1,304 2,208 -41% forced closure of sites on March 21st Owner-operated sites 1,017 1,675 -39% ⎼ Sales were 61% ahead of 2019 until point of closure Franchise
Slide 11: Cash flow summary
Six months to June Overview of the period: £k 2020 2019 Cash outflow from operating activities carefully managed Adjusted Group EBITDA loss (816) (1,059) ⎼ Benefit from deferrals and Government support schemes Working capital and non-cash movements 720 (492) Tax 2 (18) ⎼ Benefit from unwinding yea
Slide 12: Balance sheet and cash position
£k Jun-20 Dec-19 £1.1m cash at period end and £4.3m as at 31 August 2020 Non current assets ⎼ C.30% of deferrals unwound by end of August Property, plant and equipment 3,606 3,935 ⎼ Resumption of capex for site roll-out Right of use assets 2,642 2,470 Intangible assets 1,990 2,906 ⎼ IFRS 16 recogn
Slide 13: A Closer Look at UK Sites
A CLOSER LOOK AT T UK SITES
Slide 14: LFL sales growth and site performance
Pre-COVID performance was strong. Sites were delivering mature targets for both sales and EBITDA, and 12 week rolling LFL sales growth was +25% for the 2 year old sites, and +59% for all sites combined. Average weekly sales and EBITDA performance Summary: 120.0 Target economics being achieved acro
Slide 15: Cashflow return on invested capital
First 12 26 Weeks to Cashflow return3 on invested capital Data as at 1 Mar 2020, annualised months 1 Mar 2020 significantly in excess of management’s Actual returns 1 estimated cost of capital First 3 sites 7.6% 22.8% Several factors provide confidence that up- Next 5 sites -0.8% 12.3% front inv
Slide 16: Post-lockdown trading: UK sales and EBITDA 2020 vs 2019
Whilst still early days, trading post lockdown has been encouraging, with sales approaching 2019 levels and EBITDA converting more efficiently. UK Sales and EBITDA: 2020 vs 2019 160,000 Forced closure of all sites dues to • The UK estate was reopened COVID lockdown measures in the 2 nd week of July,
Slide 17: TripAdvisor Travellers' Choice ratings
Each UK site open for more than one year has earned the prestigious TripAdvisor Travellers’ Choice accreditation, awarded only to the very best bookable experiences globally. TripAdvisor ratings as at 22 Sept 2020 17
Slide 18: Progress Against the Strategy
PROGRESS AGAINST THE STRATEGY
Slide 19: Five-point plan to build shareholder value
During the fundraising roadshow in June, we outlined a 5-point plan to build shareholder value, summarised below. 1. Roll-out the owner-operated network through direct investment, targeting 20 sites in the short term 2. Deliver a US Franchise network in partnership with PCH 3. Sustain and support gr
Slide 20: UK site roll-out progress: Norwich, Basingstoke, Cheltenham
COVID-19 forced us to stop all building work on Norwich and Basingstoke – two sites which should have opened in Q2. However, Norwich has now been completed and opened last week, and Basingstoke will open at the end of October. Escape Hunt Norwich: Progress: • Norwich, Group’s 10 th site, opened on 2
Slide 21: US franchise network with PCH
The restrictive measures currently in place in Minneapolis have slowed PCH’s progress in establishing the Escape Hunt ”Super Centre” in St Paul PCH are instead focusing first on reinvesting in Houston, to transform the site into the showcase centre for the brand. 4 legacy games will be replace
Slide 22: Franchise network: impact of COVID and support
The impact of COVID on the existing network has varied by city, but overall, cash pressure has put a strain on many of the franchisee businesses. However, most sites are back up and open and revenues to Escape Hunt were an encouraging 65% of prior year August Current state of play: Additional suppor
Slide 23: Broadening the product offer: EH for Business and Brands
During the fundraising, we talked about broadening the product offer around 4 key customer groups: 1) EH for Retail, 2) EH for Business, 3) EH for Education, and 4) EH for Brands. Focus so far has been on two of the four area – EH for Business and EH for Brands. EH for Business: EH for Brands: • Foc
Slide 24: Investment in infrastructure and efficiency
We highlighted 4 key areas where targeted investment could drive operational efficiencies across the business and allow us to scale. Progress on each is summarised below. Games management systems – £100K1 E-commerce platform - £300k1 Further investment in IT solutions to allow Upgrade for be
Slide 25: Outlook
OUTLOOK
Slide 26: Outlook: encouraged by post-lockdown trading
Overall we have been encouraged by trading in the period post lockdown and we are making good progress against the strategy laid out during the fundraise. We are aware of the growing rate of COVID-19 infections and the possibility of further restrictions which may impact our progress, but remain con
Slide 27: 7 Appendix
Slide 28: Investment highlights
Attractive industry dynamics – strong growth in experiential leisure International brand and ability to partner with global IP studios Site economics now proven ⎼ Attractive site commercials; positive cash dynamics and flexible costs ⎼ Target 10%+ cash return on investment in Yr 1; 25%+ in Yr
Slide 29: Board and management biographies
Richard has been CEO of two quoted multi-site business where in each Richard joined the Company on its Admission to AIM after working since case he created a significant increase in shareholder value. He went on to November 2016 with the Escape Hunt management team, getting to know Chair a number of
Slide 30: Major shareholders
SHAREHOLDER ORDINARY SHARES HELD % HELD Canaccord Genuity Group Inc 16,639,915 20.70% Jo Hambro Capital Management 8,080,838 10.05% Mr John Story 7,999,999 9.95% Mr Stuart Hawthorne 7,777,777 9.68% Zeus Capital 3,166,669 3.94% Crux Asset Management 2,833,334 3.53% Mr Luke Johnson 2,666,668 3.32% 30
Slide 31: Thank You