Time Out Group Plc · LSE:TMO
Time Out — Investor Presentation (December 2019)
41 slides from Time Out's investor presentation, Dec 5, 2019
Slide 1: Time Out Market Overview Dec'19
0 The Best of the city Time Out Market Overview Dec’19 0
Slide 2: Time Out transformation continues
TIME OUT GROUP Time Out transformation continues Successful growth of a third channel for our content with the opening of five new food and cultural markets LISBON MIAMI NEW YORK BOSTON CHICAGO MONTREAL DUBAI LONDON-WATERLOO PRAGUE 1968 2011 2012 2013 2014 2019 Q2 2019 Q2 2019 Q2 2019 Q4 2019 Q4 202
Slide 3: Time Out Market drives revenue growth
TIME OUT GROUP Time Out Market drives revenue growth Group revenue split by activity ~60% Markets ~40% 18% ~35% ~25% Digital 48% 18% 32% ~25% ~15% Print 66% Other 16% 2% <1% <1% 2010 2018 2019E(1) 2021E(1) (1) Liberum estimates 2
Slide 4: The recipe for success: unique ingredients for all stakeholders
TIME OUT MARKET The recipe for success: unique ingredients for all stakeholders Consumer Chefs Landlords Brand authority drives large Giving consumers access to the Superior revenue and margin consumer footfall to an area best chefs operating in a city as part opportunity with the accolade of boosti
Slide 5: Target operating model
TIME OUT MARKET Target operating model 15 to 25 2 to 3 £10m 30% Kitchens run by the best Bars operated Average design, build Share of chef’s restauranteurs in that by Time Out and fit-out cost turnover city 1m £3m 20% Covers EBITDA in Return on investment steady-state (IRR) 4
Slide 6: A focus on the best of a city ensures longevity
TIME OUT MARKET A focus on the best of a city ensures longevity Previously: Honorato New: Ground Burger • Replaced Honorato in Summer 2018 • Entered Market at launch, Lisbon’s • 5-star rated old school American style of premium gourmet burger burger • One of the highest revenue operators • Average m
Slide 7: Strong unit economics for Time Out
TIME OUT MARKET Strong unit economics for Time Out Unit economics per cover OPEX split £20 £9.50 £7.65 Spend Net revenue Gross profit (example order) • £15 on food • 30% tenant revenue • 100% food margin Staff costs • £5 on beverage share on food spend • 75% beverage margin Rent • 100% of beverage •
Slide 8: Attractive economics for chefs
TIME OUT MARKET Attractive economics for chefs Typical Time Out Market Time Out Market Restaurant Chef value-add Potential covers per day Unparalleled footfall per seat 3x 6-10x (location, marketing etc.) Shared marketing, EBITDA 3-15% 9-17% cleaning, service, rent etc. Start-up capex £300k-500k £0
Slide 9: Time Out Market Lisbon - opened 2014
TIME OUT MARKET Time Out Market Lisbon - opened 2014 “A must for food lovers” - Conde Nasté Traveller “Eat like a local at the >£4million best food market in EBITDA Lisbon” - bePortugal.com 4 million Visitors 4.5 out of 5 stars 32,000 square ft - Google Food court area 26 Restaurants 19 Bars, shops
Slide 10: Time Out Market Lisbon - Unparalleled track-record
TIME OUT MARKET Time Out Market Lisbon - Unparalleled track-record Visitors and operational leverage drive performance Net Revenue £m Growth drivers 8.8 Adjusted EBITDA £m Share of chef’s turnover • Effective share of turnover increased from 7% to 23% since 6.0 2015 4.3 4.4 Own operations 3.7 • New
Slide 11: Time Out Market Miami - opened May 2019
TIME OUT MARKET Time Out Market Miami - opened May 2019 “Miami’s culinary stars align at new Time Out Market” - Travel Weekly “Time Out Market Miami is the food hall to Miami Beach 1601 Drexel Avenue conquer all food halls” - Miami.com 18,236 square ft Food court area “Taste of the town: Time Out Ma
Slide 12: Miami
TIME OUT MARKET Time Out Market Miami 11
Slide 13: Miami – Eat & Drink
TIME OUT MARKET Time Out Market Miami – Eat & Drink 1 Azucar by Suzi Batlle 11 KUSH by Matt Kuscher Fresh locally sourced ice cream Slider bar 2 Antonio Bachour 12 Leña by Michael Beltran Patisserie & confections Meat/steak 3 Salt & Brine by Christian & Domenica Plotczyk 13 Beach Pie Norman van Aken
Slide 14: Time Out Market New York - opened June 2019
TIME OUT MARKET Time Out Market New York - opened June 2019 “In Brooklyn, a new Food Hall with breathtaking views” - The New York Times “Enormous Time Out Market opens in Dumbo, Brooklyn DUMBO with a stellar 55 Water Street line up of restaurants” - Gothamist 21,000 square ft Food court area “No mat
Slide 15: New York
TIME OUT MARKET Time Out Market New York 14
Slide 16: New York – Eat & Drink
TIME OUT MARKET Time Out Market New York – Eat & Drink 1 Bessou by Emily Yuen 12 Little Ada by Tomer Blechman Middle Eastern cuisine Japanese comfort food 13 Bklyn Wild by Ivy Stark 2 Fish Cheeks by Ohm Suansilphong & Jenn Saesue Soup & salad Coastal Thai cuisine 14 Breads Bakery 3 Mr. Taka by Takat
Slide 17: Time Out Market Boston - opened June 2019
TIME OUT MARKET Time Out Market Boston - opened June 2019 “Food lover’s paradise: Time Out Market opens in Boston” - CBS Boston “The Time Out Market Boston vendor line-up The Fenway is getting even more Neighbourhood 401 Park Drive exciting” - Boston Magazine 25,000 square ft Food court area “At Cra
Slide 18: Boston
TIME OUT MARKET Time Out Market Boston 17
Slide 19: Boston – Eat & Drink
TIME OUT MARKET Time Out Market Boston – Eat & Drink 1 Craigie Burger by Tony Maws 9 BISq by Alex Saenz Franco-American cuisine Deli/Charcuterie 2 Saltie Girl by Kathy Sidell & Kyle McClelland 10 Gelato & Chill by Vincent Turco Fresh seafood Ice cream 3 MC Kitchen by Matthew Kaplan Vegan cuisine 11
Slide 20: Time Out Market Montréal - opened November 2019
TIME OUT MARKET Time Out Market Montréal - opened November 2019 “Fine dining at the mall: Time Out Market Montréal open for business” - Montréal Gazette Centre Eaton “Time Out Market gives de Montréal Montréal its very own Sainte-Catherine-Street downtown gourmet food hall” - CTV News 40,000 square
Slide 21: Montréal
TIME OUT MARKET Time Out Market Montréal 20
Slide 22: Montréal – Eat & Drink
TIME OUT MARKET Time Out Market Montréal – Eat & Drink 1 Hof Sucrée by Jeffrey Finkelstein 8 Il Miglio by Charles-Antoine Crête & Cheryl Johnson Patisserie Italian cuisine 2 Marusan by Tetsuya Shimizu 9 Moleskin by Chef Frédéric St-Aubin Japanese Pizza 3 Le Red Tiger by Dan Pham and Phong Thach 10 R
Slide 23: Time Out Market Chicago - opened November 2019
TIME OUT MARKET Time Out Market Chicago - opened November 2019 “The market will feature three floors of Chicago's best dining experiences” - NBC5 Chicago West Loop “The chef line up is 916 W Fulton Market dazzling” - Chicago Tribune 50,000 square ft Food court area “Massive Time Out 18 Market comes
Slide 24: Chicago
TIME OUT MARKET Time Out Market Chicago 23
Slide 25: Chicago – Eat & Drink
TIME OUT MARKET Time Out Market Chicago – Eat & Drink 1 Lost Larson by Bobby Schaffer 10 Mini Mott by Edward Kim Breakfast and Bakery Burgers 2 Thai Dang by Dang and Danielle 11 Split-Rail by Zoe Schor Vietnamese Fried Chicken 3 Chef Bill Kim 12 Duck Inn Dogs by Kevin Hickey Asian Hotdogs 4 Dos Urba
Slide 26: Next openings: Owned & Operated
TIME OUT MARKET Next openings: Owned & Operated Large global pipeline of opportunities supports target of 2-3 openings p.a. • Located within the Sao Bento Station • 555 seats and a top tower restaurant Porto • 12 restaurants, two bars and one retail gallery/art shop 2021 • Located in the heart of th
Slide 27: Next openings: Management agreements
TIME OUT MARKET Next openings: Management agreements No capex and guaranteed management fee • Agreement with Emaar Malls • Located at one of Dubai’s tourist destination Dubai hubs, the Souk Al Bahar, an Arabic-style shopping mall with waterfront dining • 35,000 sq ft, 670 seats, 16 food offerings Q4
Slide 28: Delivering a substantial global footprint
TIME OUT MARKET Delivering a substantial global footprint 11 contracted sites bringing the world’s best chefs under the Time Out brand 200 6 315,486 sq ft c.7,000 of the world’s most michelin stars dining area seats respected chefs 27
Slide 29: Virtuous circle powered by a global brand
TIME OUT GROUP Virtuous circle powered by a global brand Time Out Media Time Out Market 1 Invest in unique 2 Attract the best chefs in professional content a city 6 Boost Digital & 3 Drive footfall to Print revenues Time Out Markets Grow customer Increase number 4 5 satisfaction & of eyeballs on Tim
Slide 30: Appendix Markets
Appendix Markets 29
Slide 31: Lisbon
MARKET 3 LISBON MICHELIN STARS 4.5 OUT OF 5 STARS Opened 2014 GOOGLE A concept created from scratch in 2014 by the team at Time Out Portugal, with only the best ideas and business projects in Lisbon - according to the editorial team - which can 4.5 OUT OF 5 STARS Food court area stay in the market f
Slide 32: Miami
MARKET Open Q2 2019 MIAMI Time Out Market Miami is where you’ll get to taste food from 18 of the city’s best restaurants and top chefs, sip cocktails by award- winning mixologists, see stunning works of art by Miami’s rising talents and there will even be a demonstration kitchen. Food court area It’
Slide 33: New York
MARKET NEW YORK Open Q2 2019 NEW YORK Inside one of the last surviving brick storehouses in Brooklyn’s waterfront, Time Out Market New York will present 21 food offers, 3 bars, one stage and a spectacular terrace overlooking Manhattan, between the Brooklyn and Manhattan bridges. Spread over two floo
Slide 34: Boston
MARKET B OSTON Open Q2 2019 BOSTON Occupying the ground floor of the historic 401 Park Drive building - formerly Landmark Center. The curated mix will showcase 16 food offerings, two bars, a demo kitchen, one retail shop and artists from across the city all in one iconic site–an Art Deco masterpiece
Slide 35: Chicago
MARKET CHICAGO Open Q4 2019 Food court area CHICAGO Time Out Market Chicago is at the heart of the Fulton Market District, one of the oldest meatpacking and food distribution centres in the city going back to the 19th century. Today, this is one of Chicago’s thriving neighbourhoods attracting high f
Slide 36: Montréal
MARKET MONTRÉAL Open Located in the Centre Eaton, on Sainte-Catherine Q4 2019 Street, the heart of downtown Montréal, this will be the first canadian Time Out Market. Over 40,000 Food court area sq ft, the concept will include a curated mix of 17 food offerings covering all ofMontréal gastronomic 40
Slide 37: Dubai
MARKET DUBAI Open DUBAI The Group entered into its third management agreement, partnering with Emaar Malls. Located at one of Dubai’s tourist destination hubs, the Souk Al Bahar is an Arabic-style shopping mall Q4 2020 with waterfront dining. Food court area Across 30,000 sq ft, visitors will get to
Slide 38: London Waterloo
MARKET LONDON Open LONDON Time Out Market London will be the centrepiece of Waterloo, London, a major retail and leisure development in Waterloo station where almost 100 million passengers flow through every year. Time Out WATERLOO Market London will bring the best of the city together 2021 under on
Slide 39: Prague
MARKET PRAGUE Open 2022 PRAGUE Time Out Market Prague is expected to open at the end of 2021, located at the heart of the historic city centre in the Savarin, a development in the prime downtown neighbourhood around the famous Wenceslas Square. Food court area Across 25,000 sq ft, Time Out Market Pr
Slide 40: Disclaimer
Disclaimer This document, which is personal to the recipient and has been issued by Time Out Group plc (the “Company”), comprises written materials/slides for presentations to be held in September and October 2019. This document does not constitute or form part of any offer or invitation to sell or
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