Slide 1: Interim Results for Twelve Months to 31 December 2023
INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 2: Disclaimer
DISCLAIMER XP FACTORY INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 3: Agenda 2023 Results
AGENDA 2023 RESULTS • • • • • • • • INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 4: Overview of 2023
OVERVIEW OF 2023 90bsygjx
Slide 5: Operating Highlights 2023
OPERATING HIGHLIGHTS 2023 Total revenue LFL sales growth £44.8m EH: +17%1 (2022: £22.8m) (2022, +24%) Boom: +29% 1 (2022, N/a) Adj EBITDA (Pre IFRS 16 ) Cashflow from operations £5.5m £9.5m (2022: £2.6m) (2022: £3.3m) Operating profit 2 Customer satisfaction £1.8m 98% (2022: loss £4.9m) (2022: 97%)
Slide 6: Key Metrics
KEY METRICS • • • • • • • • • 1 Adjusted for VAT benefit in 2022 2 Aggregated score expressed as a % from social reviews (e.g. Google, Facebook and TripAdvisor) All data Jan –Dec 2023. Feed It Back INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 7: Key Metrics
KEY METRICS • • • • • • • • 1 Aggregated score expressed as a % from social reviews (e.g. Google, Facebook and TripAdvisor) All data Jan –Dec 2023. Feed It Back INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 8: Transformational Growth: Financial Performance
TRANSFORMATIONAL FINANCIAL GROWTH PERFORMANCE Growth reflecting site expansion and like-for-like improvement Revenue growth Adjusted EBITDA growth • 96% revenue growth reflecting site 50 6 expansion and LFL growth 45 5 • Improvement in EBITDA reflecting 40 growth and maturation of sites 4 35 • £5.5m
Slide 9: Revenue Bridge
FINANCIAL REVENUE BRIDGE PERFORMANCE Growth reflecting site expansion and like-for-like improvement Revenue bridge • £21.9m sales growth YoY driven £50.00 + £4.9m -£0.9m + £0.1m by: £45.00 + £11.4m + £2.2m o £4.5m LFL sales growth (+23%) £40.00 £35.00 o £13.6m from new sites, including the annualisa
Slide 10: Site Level Economics
SITE LEVEL ECONOMICS
Slide 11: Steady EH Cohorts
STEADY EH COHORTS • EH site level unit economics Average Site EBITDA per room by EH Cohort have been replicable over time £60,000 • Year-on-year EBITDA growth £50,000 for all cohorts £40,000 • Improvement in mature EBITDA per room for each successive cohort £30,000 • Note, 2022 openings were £20,000
Slide 12: Sustained LFL Growth at Original Sites
SUSTAINED LFL GROWTH AT ORIGINAL SITES • 7 current EH sites were Average gross revenue per original 2018 EH room in 2018 sites opened in 2018 * £140,000 • All 5 original EH games £120,000 launched across these sites in 2018 remain open £100,000 o Maintenance cost is expensed → marginal £80,000 incre
Slide 13: Attractive Site ROCE
ATTRACTIVE SITE ROCE • 20 UK sites open throughout 2023 EBITDA / Net Capex1 2023 100% • Weighted average LTM site 90% EBITDA ROCE (Net capex) of 80% 46% 70% • Site EBITDA typically 60% approximates to site FCF over 50% the site lifetime o Limited incremental capex 40% after initial build, 30% mainte
Slide 14: Attractive Site ROCE
ATTRACTIVE SITE ROCE • 11 O+O sites opened 2023 EBITDA / Net Capex1 throughout 2023 200% • Weighted average LTM site 180% EBITDA ROCE (on net capex) of 48% at these sites 160% 140% • As with EH, FCF after initial 120% build approximates to EBITDA across the site lifetime 100% 80% • Average site leve
Slide 15: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS
Slide 16: Financial Performance Year to Dec 2023
FINANCIAL PERFORMANCE Year to 31 Dec 2023 ● ● ● ● ● ● ● ● ● 1. Adjusted for VAT benefit in 2022 INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 17: Cash Flow
Year to 31 Dec CASH FLOW 2023 ● ● ● ● ● ● ● ● ● ● INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 18: Financial Position Dec 2023
FINANCIAL POSITION 31 Dec 2023 ● ● ● ● ● ● ● Nature of borrowing (£'000) < 1yr > 1yr Total Vendor Loans 996 489 1,485 Fit out finance (incl equip finance leases) 802 838 1,640 Bank and other borrowings 387 942 1,329 2,185 2,269 4,454 INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 19: Post Period Highlights
POST PERIOD HIGHLIGHTS
Slide 20: Winter Trading
POST PERIOD HIGHLIGHTS WINTER TRADING • • • • • • INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 21: Summary and Outlook
SUMMARY AND OUTLOOK XP FACTORY • • • • • INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 22: Appendix Slides
APPENDIX SLIDES
Slide 23: Strategy Update
STRATEGY UPDATE XP FACTORY Optimise existing estate Site expansion Franchising strategy • • • • • • • • • • • INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 24: Strategy Update: Opportunity and Key Strengths
STRATEGY UPDATE OPPORTUNITY ● Key strengths ● ● ● ● ● ● ● ● ● ● ● ● ● ● INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 25: Examples of Capital Deployment
EXAMPLES OF CAPITAL DEPLOYMENT XP FACTORY Data driven Boom site Escape Hunt incremental games Franchisee acquisitions improvements • Optimise site layout and game mix • Added 5 additional Escape rooms • 5 Boom franchisee sites acquired added at select highly utilised sites in 2023 • Increased game c
Slide 26: Market Leader in Experiential Leisure
MARKET LEADER IN EXPERIENTIAL LEISURE XP FACTORY • EH and BBB are the UK Competitive Socialising # of Escape Room # of UK rooms1 market leaders in Escape 120 Room and Competitive 30 UK sites1 Socialising 25 100 • Scale advantages 20 80 • Repeatable, modular sites and products that can be 15 60 repli
Slide 27: Demographics
DEMOGRAPHICS XP FACTORY • Both brands appeal to a broad Customer age split by brand1 Customer gender split by and overlapping demographic 35% brand1 • Diverse customer base spread 30% 60% across gender and age groups for each brand 25% 50% 20% 40% 15% 30% 10% 20% 5% 10% 0% 0% 18-24 25-34 35-44 45+ M
Slide 28: Customer Feedback
CUSTOMER FEEDBACK • Escape Hunt has continued to delight customers consistently. • All eligible sites 1 have been awarded TripAdvisor’s 2023 Travelers' Choice, recognizing the top 10% of venues globally. • Average 2023 Feed it Back review score 99% New New New 1 All sites open and receiving TripAdvi
Slide 29: Customer Feedback
CUSTOMER FEEDBACK • Boom’s customer feedback is outperforming both the leisure sector as a whole, and the competitive socializing competitor set • As in previous years, Boom’s review ratings typically dip in December reflecting operational workload associated with strong demand and capacity limitati
Slide 30: Property Portfolio
PROPERTY PORTFOLIO March 2023 INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 31: At a Glance: Our Brands
AT A GLANCE OUR BRANDS Our 75 venues offer a wide variety of entertainment experiences together with licensed bars delivered with world class hospitality in prime retail or leisure locations. 45 30 Venues Venues Wet led venues home to Experience led venues multiple entertainment home to team based e
Slide 32: Brand Focus: Boom Battle Bar
BRAND FOCUS The modularity provided by our multi-experience proposition is distinctly advantageous We can optimize the mix of games and experiences by venue size and location as well as A unique bar continue to innovate and refresh the offer to remain current without the requirement for wholesale ch
Slide 33: Brand Focus: Escape Hunt
BRAND FOCUS As a 360 gaming business that goes beyond the bricks and mortar this gives us access to both depth and scale unique to retail and leisure 5 Star rated, premium team based adventures ESCAPE ROOMS In venue immersive escape adventures or virtual reality ESCAPE HUNT is unique in its position
Slide 34: ESG Initiatives
ESG INITIATIVES XP FACTORY • • • • • • INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 35: Management
MANAGEMENT XP FACTORY Richard joined the Company on its Admission Graham joined as CFO in January 2020. He is a to AIM after working since November 2016 chartered accountant, having qualified with with the xpfactory (formerly Escape Hunt) Deloitte in London, and has worked in advisory, management te
Slide 36: Shareholdings Dec 2023
SHAREHOLDINGS 31 Dec 2023 INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023
Slide 37: Interim Results for Twelve Months to 31 December 2023
INTERIM RESULTS FOR TWELVE MONTHS TO 31 DECEMBER 2023