Slide 1: Results for the Year Ended 31 December 2021
5 FOR THE YEA EMBER 2021 BOOM BATTLE BAR
Slide 2: Disclaimer
The information contained in this document (“Presentation”) has been prepared by XP Factory plc (the “Company”). This Present ation 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 i nfo
Slide 3: Performance Overview
PERFORMANCE OVERVIEW
Slide 4: Financial performance exceeded expectations across all key metrics
“We closed the year better positioned than ever before to capitalise on the fast-growing experiential leisure market” Financial performance exceeded expectations across all key metrics Full year revenue of £7.0m, 163% increase vs £2.7m in 2020 despite being closed for most of H1 H2 revenue of £5
Slide 5: XP Factory establishing itself as one of the fastest growing leisure businesses
“XP Factory is establishing itself as one of the fastest growing, pre -eminent leisure businesses in the UK” Site openings continuing at pace New Boom sites opened to date in 2022 in Watford, Aldgate East, Glasgow, Bath, Ipswich and Exeter At 31 May 2022, 15 Boom units trading – 3 O+O and 12 fra
Slide 6: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS
Slide 7: Strong performance in H2 from enhanced scale and capability
Strong performance in H2 from enhanced scale and capability £m H1 2021 H2 2021 2021 2020 2019 '20 - '21 Revenue in 2021 up 163% on 2020 Revenue 1.2 5.8 7.0 2.7 4.9 163% EH Owner-operated sites 0.9 5.1 6.0 2.1 3.8 189% ⎼ H2 revenues materially higher than full year in 2019, reflecting EH Franchise
Slide 8: Investment in the year to develop EH network and in acquisitions
Investment in the year to develop EH network and in acquisitions £m 2021 2020 2019 £0.8m cash generated from operating activities excludes £2.0m tax Adjusted Group EBITDA loss 2.7 (1.4) (1.7) R&D credit received in January 2022 Working capital and non-cash movements (1.9) 0.2 (0.5) Tax (0.0) (0.0)
Slide 9: Robust balance sheet following fund raise and acquisition of Boom
£m 2021 2020 2019 Robust balance sheet following fund raise and acquisition of Boom £8.2m cash at year end and £6.9m at the end of April 2022 Non Current Assets Property Plant and equipment 5.5 3.9 3.9 PPE includes £1.0m from Boom and reflects investments in new EH Right of use assets 7.6 2.9 2.
Slide 10: Recent Performance
RECENT PERFORMA
Slide 11: Performance in Q1 2022 ahead of management's expectations
Performance in Q1 2022 was ahead of management’s expectations ⎼ Strong February half term ⎼ Improved EBITDA margins Minimum wage increases, end of rates holiday, VAT increase all took effect in Q2, offset in part by some price rises Very high level of team engagement resulting in low levels of
Slide 12: Business model being proven through recent performance
Business model being proven through recent performance O2 sales impacted modestly by closure of O2 events in January and closure of the venue following storm damage in February ⎼ Owner operated sales since then has tracked management’s expectations closely ⎼ Operating costs higher in early month
Slide 13: 4 Summary
Slide 14: Now profitable and very fast growing
“Now profitable and very fast growing – an exciting foundation from which to build” Summary A transformative year that saw the business hit group profitability for the first time in H2 2021 A significantly advanced pipeline of sites provides comfort over openings target Escape Hunt sites conti
Slide 15: Appendix
APPENDIX
Slide 16: Strong progress since acquisition of Boom
Strong progress since acquisition of Boom Existing Boom sites and Advanced Date opened / Pipeline O-O / FS planned Legal status 2 further Boom owner operated sites opened at the O2 and Exeter Norwich FS Jun-20 Open bringing total to 3; further 3 in build in Manchester, Edinburgh, Oxford Cardiff FS
Slide 17: Earnout – Contingent consideration
Earnout – Contingent consideration 25m vendor shares will be subject to an earnout which will be paid only if the performance of Boom in the financial year to December 2022 meets certain turnover and site roll-out targets ⎼ The earnout is linked to a combination of site roll out and ‘relevant turn
Slide 18: Escape Hunt franchise and owner-operated economics
Escape Hunt operates owner managed sites in the UK and has a predominantly franchised business internationally. Revenue Existing franchise network 4 players @ £22 incl VAT Typically 7.5% - 10% revenue share 5 - 6 rooms per site Fixed monthly admin fees - $250 - $500 per month Median 40% oc
Slide 19: Boom Battle Bar franchise economics
Economics: ⎼ £25k territory fee, £6k training fee, plus £18k legal completion fee Type of revenue Price % of total ⎼ 10% royalty on net sales Game sessions £6 - £75 per session 35% - 55% ⎼ Central marketing fee of 1% on net sales, plus call centre Food sales £8 per head charges 5% - 10% ⎼ Equipmen
Slide 20: Growth strategy
Maximise the UK footprint Accelerate growth in Continue to develop new Integrate the businesses, by rolling out each brand, International territories, products and markets exploit the synergies where either through direct predominantly through which facilitate the growth possible, and develop an inv
Slide 21: Major shareholders
Shareholder % held Canaccord Genuity Wealth Management 21.9 Crux Asset Management 9.6 Hargreaves Lansdown stockbrokers 8.8 JO Hambro Capital Management 6.3 Stephen Lucas 4.8 John Story 4.0 UBS 3.4 Allianz Global Investors 3.3 As at 31 March 2022 21