Slide 1: Interim Results for Six Months to 30 June 2023
INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 2: Disclaimer
DISCLAIMER XP FACTORY INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 3: Agenda 1H23 Results
AGENDA 1H23 RESULTS • • • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 4: Overview of 1H23
OVERVIEW OF 1H23 v niet fd
Slide 5: Operating Highlights 1H23
OPERATING HIGHLIGHTS 1H23 Total revenue LFL sales growth £18.7m EH: 20.4% (1H22: £8.1m) (1H22, nm) Boom:19.6% Adj EBITDA (Pre IFRS 16) Cashflow from operations £1.0m £3.4m (1H22: £0.3m) (1H22: £0.8m) O+O Sites open Franchise sites open EH: 23 (+1 post period end) EH: 23 (1H22: 19) (1H22: 23) Boom: 1
Slide 6: Key Metrics
KEY METRICS • • • • • • • • * Adjusted for VAT benefit in 2022 INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 7: Key Metrics
KEY METRICS • • • • • • • • * Adjusted for VAT benefit in 2022 INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 8: Transformational Financial Performance
TRANSFORMATIONAL FINANCIAL GROWTH PERFORMANCE Growth reflecting site expansion and like-for-like improvement Revenue growth Adjusted EBITDA growth • 130% revenue growth reflecting 20 2 2022 site expansion and LFL 18 growth 16 • Improvement in EBITDA reflecting 1 growth and maturation of sites 14 1.0
Slide 9: Revenue Bridge
FINANCIAL REVENUE BRIDGE PERFORMANCE Growth reflecting site expansion and like-for-like improvement Revenue bridge £25.00 • £10.6m sales growth YoY driven £20.00 +£2.6m +£0.5m +£0.0m -£0.8m by: + £5.9m +£1.0m o £1.3m LFL sales growth (+20%) £15.00 o £7.1m from new sites £m +£0.8m o £2.6m acquired fr
Slide 10: Site Level Economics
SITE LEVEL ECONOMICS
Slide 11: Sustained LFL Growth at Oldest Sites
SUSTAINED LFL GROWTH AT OLDEST SITES • 7 current EH sites were Average gross revenue per original EH room opened in 2018 opened in 2018 * £80,000 • All 5 original EH games launched across these sites in £70,000 2018 remain open £60,000 o Maintenance cost is expensed → marginal £50,000 incremental ca
Slide 12: Steady EH Cohorts
STEADY EH COHORTS • EH site level unit economics Average Site EBITDA per room by EH Cohort have been replicable over time £30,000 • Year-on-year EBITDA growth £25,000 for all cohorts £20,000 • Note, 2022 openings were ramping in 1H22 and not fully £15,000 mature in 1H23 – expect underlying EBITDA im
Slide 13: Attractive Site ROCE
ATTRACTIVE SITE ROCE • 16 UK sites open before June Last 12 month EBITDA / Net Capex1 2022 90% • Weighted average LTM site 80% EBITDA ROCE (Net capex) of 40% 70% 60% • Site EBITDA approximates to site FCF over the site lifetime 50% o Limited incremental capex after initial build, 40% maintenance cos
Slide 14: Attractive Site ROCE
ATTRACTIVE SITE ROCE • 3 O+O sites opened before Last 12 month EBITDA / Net Capex1 June 2022 2 60% • Weighted average LTM site EBITDA ROCE (on net capex) 50% of 42% at these sites 40% • As with EH, FCF after initial build approximates to EBITDA across the site lifetime 30% • Site FCF also typically
Slide 15: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS
Slide 16: Financial Performance 6 months to June 2023
FINANCIAL PERFORMANCE 6 months to June 2023 ● ● ● ● ● ● ● ● 1. Adjusted for VAT benefit in 2022 INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 17: Cash Flow 6 months to June 2023
CASH FLOW 6 months to June 2023 ● ● ● ● ● ● ● ● ● ● ● INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 18: Financial Position 30 June 2023
FINANCIAL POSITION 30 June 2023 ● ● ● ● ● ● ● ● ● Due within 12 £k mths > 12 mths Total Vendor Loans 1,000 650 1,650 Fit out finance 492 878 1,370 Bank and other borrowings 107 548 655 1,599 2,076 3,675 ● INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 19: Post Period Highlights
POST PERIOD HIGHLIGHTS
Slide 20: Summer Trading
POST PERIOD HIGHLIGHTS SUMMER TRADING • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 21: Summary and Outlook
SUMMARY AND OUTLOOK XP FACTORY • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 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 SIX MONTHS TO 30 JUNE 2023
Slide 24: Strategy Update: Opportunity and Key Strengths
STRATEGY UPDATE OPPORTUNITY ● Key strengths ● ● ● ● ● ● ● ● ● ● ● ● ● ● INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 25: 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 sites1 market leading Escape Room 25 and Competitive Socialising 30 UK sites1 brands 25 20 • Scale advantages 20 • Repeatable, modular sites and 15 products that can be 15 replic
Slide 26: 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 27: Customer Feedback
CUSTOMER FEEDBACK • Escape Hunt has continued to delight customers consistently. • All eligible sites 1 have been awarded TripAdvisor’s Travelers' Choice, recognizing the top 10% of venues globally. New New New 1 All sites open and receiving TripAdvisor reviews for >12mo, as at 11/09/2023 INTERIM RE
Slide 28: Customer Feedback
CUSTOMER FEEDBACK • Boom’s customer feedback is outperforming both the leisure sector as a whole, and the competitive socializing competitor set INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 29: Property Pipeline 30 June 2023
PROPERTY PIPELINE 30 JUNE 2023 INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 30: At a Glance: Our Brands
AT A GLANCE OUR BRANDS Our 76 venues offer a wide variety of entertainment experiences together with licensed bars delivered with world class hospitality in prime retail or leisure locations. 47 29 Venues Venues Wet led venues home to Experience led venues multiple entertainment home to team based e
Slide 31: Our Brands
OUR BRANDS We create & curate world class lean in entertainment experiences fused with world class hospitality. At XP Factory, our purpose is to bring people together through shared experiences. We strongly believe that life gets a whole lot more exciting the 27 unique gaming more you throw yourself
Slide 32: 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 33: 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 34: ESG Initiatives
ESG INITIATIVES XP FACTORY • • • • • • INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 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 June 2023
SHAREHOLDINGS 30 JUNE 2023 INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
Slide 37: INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023
INTERIM RESULTS FOR SIX MONTHS TO 30 JUNE 2023