Slide 1: Boom Battle Bar
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: 2022 represents a transformational year
“2022 represents a transformational year focused on delivering a platform to support a profitable and highly cash generative business in future” Financial performance – H1 2022 Group revenue of £8.1m, 589% increase vs £1.2m in H1 2021, reflecting Boom acquisition and end of Covid restrictions Si
Slide 5: XP Factory one of the fastest growing leisure businesses in the UK
“XP Factory established itself as one of the fastest growing, pre-eminent leisure businesses in the UK” Site openings continuing at pace New Boom sites opened since 30 June 2022; franchise sites in Sheffield and Chelmsford; owner operated (O+O) in Edinburgh and Plymouth Acquisition of former Boo
Slide 6: Strong progress since the beginning of the year
Strong progress since the beginning of the year 2 further Boom owner operated sites opened in the period in Exeter and Existing Boom sites and Advanced Date opened / Manchester bringing total to 4 at 30 June 2022 Pipeline O-O / FS planned Legal status 1 Norwich O-O Jun-20 Open Since period end,
Slide 7: Escape Hunt path to maturity takes time
Consistent with the hospitality industry as a whole, Escape Hunt has demonstrated that the path to maturity takes time Continued growth well past the first year of opening Labour efficiency continues to improve built on experience and operations know-how Ebitda margins improved throughout the
Slide 8: Time taken to reach maturity has quickened
As we have opened more sites, the time taken to reach ‘maturity’ has quickened Sites 1 and 2 took a year to reach ‘target turnover’; growth has continued since then Sites 11 and 12 reached initial ‘target turnover’ in a quarter of the time Learning effects of having opened sites before plus aw
Slide 9: Early indications from Boom owner operated sites
Early indications from our Boom owner operated sites support similar sales and operating efficiency profile 35 weeks into the year, we continue to set new weekly sales records across our estate Labour efficiency continues to improve in regular increments Drop through to EBITDA is increased by
Slide 10: TripAdvisor Travellers' Choice accreditation
Each UK site open for more than one year has again earned the prestigious Tr ipAdvisor™ Travellers’ Choice accreditation, awarded only to the very best bookable experiences globally. 14 out of 16 sites ranked in top 3 in fun and games category in their area New New New 10 TripAdvisor ratings as at
Slide 11: Boom Lakeside earned Traveller's Choice award
The only owner-operated Boom Battle Bar open for a full year in Lakeside earned the Traveller’s Choice award from Tripadvisor™ Engaged independent feedback partner in June 2022 to monitor and react to consumer feedback Encouraging early results: Boom outperforming both the sector and leisure ind
Slide 12: Summary of Interim Financial Performance and Position
SUMMARY OF INTERIM FINANCIAL PERFORMANCE AND POSITION
Slide 13: Strong performance in H1 from enhanced scale post Boom acquisition
Strong performance in H1 from enhanced scale post Boom acquisition £m H1 2022 H1 2021 FY 2021 FY 2020 H1 Revenue in 2022 up 589% on 2021 Revenue 8.1 1.2 7.0 2.7 ⎼ EH O+O revenue of £4.3m (H1 2021: £0.9m) EH Owner-operated sites 4.3 0.9 6.0 2.1 EH Franchise network 0.2 0.2 0.6 0.6 ⎼ EH franchise re
Slide 14: Investment in the year to develop Boom and EH networks
£m H1 ' 22 H1 ' 21 FY 2021 Investment in the year to develop Boom and EH networks Adjusted Group EBITDA (loss) 1.1 (0.8) 2.7 £0.8m cash generated from operating activities Working capital and non-cash movements (0.3) 0.7 (1.9) Tax 0.0 (0.0) (0.0) £3.3m invested in tangible and intangible assets
Slide 15: Balance sheet movements largely due to new site growth
Balance sheet movements largely due to new site growth £m Jun 2022 Dec 2021 Jun 2021 £5.2m cash at 30 June 2022 and £3.7m at 31 August 2022 Non Current Assets £2.1m increase in PPE reflects £3.4m net capex on new sites offset by Property Plant and equipment 7.6 5.5 4.2 depreciation and write dow
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Slide 17: Escape Hunt revenue up 11% in 10 weeks to 12 September 2022
Escape Hunt revenue up 11% in 10 weeks to 12 September 2022 compared to the same 10 week period in 2021 ⎼ Underlying performance up 27% when VAT benefit in 2021 is removed ⎼ Reflects larger estate and 8% like-for-like growth ⎼ EBITDA margins continue to exceed internal benchmark of 30% Boom owne
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Slide 19: 2022 is the year we set the foundations
“2022 is the year in which we will set the foundations for a fast growing, profitable, cash generative experiential leisure business” Summary Significant progress made towards establishing UK footprint for Boom Battle Bars Year end target of 27 Boom sites on track; owner-operated targets already
Slide 20: Appendix
APPENDIX
Slide 21: XP Factory plc Shareholdings as at 30 June 2022
21 XP Factory plc Shareholdings as at 30 June 2022 Number of shares % held Total number of shares in issue 150,383,180 100.0% Ordinary shares Shareholder held % held Canaccord Genuity Wealth Management 32,946,854 21.91% CRUX Asset Management 14,458,731 9.61% Hargreaves Lansdown, stockbrokers (EO) 13
Slide 22: 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