Parques Reunidos Corporate Presentation. January 2018

Parques Reunidos Corporate Presentation January 2018

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Many factors could cause the actual results, performance or achievements of Parques Reunidos to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise. 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These analysts, brokers and investors must bear in mind that these estimates, projections and forecasts do not imply any guarantee of Parques Reunidos s future performance and results, price, margins, exchange rates, or other events, which are subject to risks, uncertainties and other factors beyond Parques Reunidos s control, such that the future results and the real performance could differ substantially from these forecasts, projections and estimates. The information in this document, which does not purport to be comprehensive, has not been independently verified and will not be updated. The information in this document, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. Parques Reunidos expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the information, including any financial data and any forward-looking statements, contained in this document, and will not publicly release any revisions that may affect the information contained in this document and that may result from any change in its expectations, or any change in events, conditions or circumstances on which these forward-looking statements are based or whichever other events or circumstances arising on or after the date of this document. Market data and competitive position used in this document not attributed to a specific source are estimates of Parques Reunidos and have not been independently verified. In addition this document may contain certain financial and other information in relation to other companies operating in the leisure sector. This information has been derived from publicly-available sources and Parques Reunidos accepts no responsibility whatsoever and makes no representation or warranty expressed or implied for the fairness accuracy, completeness or verification of such information. Certain financial and statistical information contained in this document is subject to rounding adjustments. Accordingly, any discrepancies between the totals and the sums of the amounts listed are due to rounding. Certain management financial and operating measures included in this document, including number of visitors or revenues per capita, have not been subject to a financial audit or have been independently verified by a third party. In addition, certain figures contained in this document, which have also not been subject to financial audit, are combined and pro forma figures. 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You are solely responsible for seeking independent professional advice in relation to the information contained herein and any action taken on the basis of the information contained herein. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information. By attending the presentation or receiving this document you agree to be bound by the foregoing limitations. 2

Leading global leisure operator of regional parks 20 MM visitors Revenues of 579 MM EBITDA of 174 MM Global platform of over 60 parks Presence in 14 countries One of the 3, truly global operators ThemeParks Animal Parks Water Parks Other Notes 1. Includes five MECs underdevelopment 3

Well-diversified portfolio of regional parks We benefit from a truly diversifiedportfolio 2017 Revenue Geographical Split Norway Germany France Italy Belgium 7% 5% 4% 4% 7% Spain Other (1) 11% 25% 38% USA Regional park business model resilient to adverse macro economic conditions Strong regional brands Stable, predictable local demand Low dependence on tourism Spain USA 5% Non destination parks 80% 21% 60% 20% 14% Good value for money proposition Note 1. Other includes Netherlands, UK, Denmark, Argentina, Dubai, Vietnam 4

Best in class operators Proven capacity to operate all type pf parks across multiple regions Our ability to benchmark is a unique management tool Continuous benchmarking and sharing of best practices across the entire portfolio Over 300 cost / cash flow KPIs monitored on a park level monthly State-of-the-art IT systems Our parks are consistently operated at high margins 75% 60% 45% 30% 15% 0% 2017 Parks EBITDAR margin 0 250 500 750 0 500 1.000 1.500 0 250 500 750 1.000 Animal Parks Water Parks Theme Parks Visitors 5

Highly regarded park portfolio with strong local brands and access to global IPs Highly regarded strong local brands Proven ability to obtain global IPs A leading park in Germany Designated a US National Historic Landmark Second largest leisure park in Italy Spain s largest urban park Oldest park in North America (1846) Largest New York area water park and one of America s top water parks 6

Growing market with highly attractive fundamentals Strong structural growth drivers High barriers to entry Proportion of income dedicated towards leisure and recreational activities is gradually increasing Growing middle class More than half of the world's population is aged below 30: the main target group for leisure parks Tourism is expected to continue growing Scarcity of suitable locations without strong incumbent players Significant initial capex requirements and time to build a new park and long lead time to reach breakeven Scarcity of management know-how Lack of economies of scale from a single park Fragmented market with significant potential for consolidation Market largely composed of small to medium individual parks and independent operators Family and state-owned companies, whose owners are expected to be sellers overtime Limited number of competitors targeting similar acquisition targets Positive recent market trends Ongoing macroeconomic and consumer spending recovery Increasing number of new developments of greenfield projects in Asia and the Middle East that require industry management skills Introduction of new entertainment concepts: Indoor Entertainment Centers ( IECs ) 7

Proven track record becoming a truly global and diversified player Parques Reunidos EBITDA MM Delivering growth and improving efficiency 174 29 2003 2017 whilst de-risking the business model Parques Reunidos 2003 Parques Reunidos TODAY 15 parks 1 country 100% Revenue in Spain +46 +13-75% Over 60 parks 14 countries 25% Revenue in Spain 8

Clear and well-defined strategy focused on growth 1 Multiple top line growth initiatives Season Passes IPs Off season events Ticketing and In-Park revenue New attractions Virtual Reality Operational discipline 2 32 4 Expansion Capex Management 32 2 3 4 IECs 5 Contracts Developing new projects within or adjacent to an existing park Different types: water parks, lodging facilities or camping 55 MM projects under execution over 2018-19 Target of c.20% ROIC Dubai Vietnam China Ongoing active negotiations 7 lease agreements signed Strong pipeline of potential new IECs New potential licensing agreements Selective Acquisitions Unique track record Fragmented market with potential opportunities 9

1 Top Line iniciatives Season passes Strong potential to continue growing in season passes, bringing more loyal customers, enhancing visibilityof earnings and reducing the impact of weather on the business Penetration of Season passes % of 2017 TicketingRevenue 18% 16% 14% 12.2% 12% 10% 15.4% 16.5% Key Initiatives Include entry level passes with limited advantages Launch multi-tier season passes with different advantages and prices Up-selling initiatives 8% 6% 4% 2% 4.9% Marketing campaigns Black Friday sale Christmas campaign Exclusive events targeting pass holders 0% Group Spain RoE US 10

1 Top Line iniciatives New IP Licensing Agreements Ducati @ Mirabilandia (Italy) Licensing agreement with Discovery Investing 25 MM to develop the 1 st themed are of the Ducati Brand The area will include the latest technologies including a new generation roller coaster and simulators to replicate the experience of riding a Ducati Expected to open in the 2019 season Strategic agreement to develop Discovery branded indoor entertainment centers Developing innovative family friendly, adventure, educational experiences Target is to expand in North America, Western Europe and Asia Pacific Regions 11

1 Top Line iniciatives Expand the season Off season events Off season revenues are growing on the back of off season events Key Initiatives Important Revenue Growth achieved in 2017 Halloween and Christmas Campaigns Halloween Season Continue to roll-out existing off season events Extend length of the events (more days) Extend length of stay (more hours) Christmas Season Develop and roll-out new off season events: Spring and late Summer 12

1 Top Line initiatives In Park revenues Parques Reunidos is always pursuing new ways to raise in-park per caps Key actions Examples Develop branded partnerships Improve facilities Introduce new upcharge experiences Enhance throughput Introduce all-inclusive offers Offer VIP products and services CRM initiatives 13

1 Top Line initiatives New attractions coming in 2018 New attractions are a key factor to drive attendance and increase percaps Recurrent capex (maintenance and new rides) represent 10-11% of annual revenues Raja The Worlds Largest King Cobra Bombs Away & Riptide Racer 14

1 Top Line initiatives New Virtual Reality Coasters Key Benefits Improves guest experience Examples Warner Park Madrid SPAIN (2017 Season) Batman Escape suspended roller coaster 1 st VR coaster in Spain Upcharge experience Mirabilandia ITALY (2017 Season) Master Thai double roller coaster Reduces capital needs Kennywood USA (2017 Season) Sky Rocket roller coaster Located at Kennywood Park in Pittsburg, PA Flexibility to easily update VR themes every season or during the same season Parque Atracciones de Madrid SPAIN (2017 Season) TNT roller coaster 1 st roller coaster in Spain with interactive VR Potential extend VR capabilities to other rides 4 new VR attractions to open in the 2018 season Europe: Bobbejaland, BonBonLand USA: Castle Park, Tusenfryd 15

2 Expansion capex projects Expansion capex projects: Maximizing the value of the existing portfolio Strong and visible growth opportunity 2 nd gate parks, lodging facilities, or new areas in available space within or adjacent to an existing park Low operational risk and high visibility of targeted attendance (vs. a greenfield project) Efficient use of unexploited space (c.400 acres of available land) Significant cross selling opportunity within main park Tangible cost synergies by leveraging on the structure of the main park Lower investment requirements by leveraging on existing facilities and rides 17

2 Expansion capex projects Expansion capex projects: Maximizing the value of the existing portfolio 3 different types of expansion projects already successfullyproven 2 nd Gate Parks Lodging Facilities Transformational areas Mirabeach water park (Mirabilandia) Aquamexicana water park (Slagharen) Warner Beach water park (Warner) Bear Creek Campground (Lake Compounce) Raccoon Lodging facility (Slagharen) Ducati Land (Mirabilandia) Nickelodeon area (Parques de Atracciones de Madrid and Movie Park) 18

2 Expansion capex projects Expansion capex: 2018-19 projects C. 55 MM of projects announced and under execution to be opened over 2018-19 Target of a c.20% ROIC Expansion of Warner Beach New Nickelodeon Area Expansion of Mirabeach Investment: c. 8 MM 2018 Season Strategic rationale Extend length of stay with more content for a 2 dayvisit Expand catchment area Enhance product offering Investment: c. 5 MM 2018 Season Strategic rationale Phase 2 of successful first Nickelodeon area launched in 2014 Reinforce penetration of families with kids Enhance product offering Boost in-park consumption Investment: c. 4 MM 2018 Season Strategic rationale Extend length of stay with more content for a 2 dayvisit Expand product offering to attract all segments (families, kids and teenagers) 18

2 Expansion capex projects Expansion capex: 2018-19 projects C. 55 MM of projects announced and under execution to be opened over 2018-19 Target of c.20% ROIC New branded kids area Ducati World Living Shores Aquarium Investment: c. 7 MM 2018-19 Season Strategic rationale Targeting families with kids IP strong brand awareness providing a great opportunity to bring new demand Enhance product offering Investment: c. 25 MM 2019 Season Strategic rationale Unique location close to Bologna, Ducati s hometown, to attract motorcycle fans Includes new generation of roller coasters and simulators Investment: c. 4 MM 2018 Season Strategic rationale Indoor aquarium in the New Hampshire White Mountains Strong product bundling options (2 day stay, hotel packages and annual passes) Year-round operation 19

3 Management Contracts Dubai: Motiongate & Bollywood A 3,400 MM premier year-round regional leisure and entertainment destination Motiongate and Bollywood parks represent the largest investment in the entire leisure destination Both parks opened in 2016 Vietnam: Dragon & Typhoon parks 10-year management contract with Sun Group Dragon Park opened in January 2017; Typhoon Water Park opened in April 2017 First class theme park and water park located in Ha Long City with 214 hectares 20

4 IECs Designed IEC concepts Lionsgate Centre Nickelodeon Adventure Splash Water Park Atlantis Aquarium Discovery Key Features (1) Key Features (1) Key Features (1) Key Features (1) Key Features (1) Area 3,500-5,000 sqm Area 5,000-7,500 sqm Area 6,000 sqm Area 6,000 sqm Area 5,000 sqm Visitor capacity 1,000-1,200 (max) Visitor capacity 1,000-1,200 (max) Visitor capacity 1,700 (max) Visitor capacity 1,500 (max) Visitor capacity 1,500 (max) Main Attractions Horror Walkthrough Interactive Dark Ride Media/VR Simulator Branded Escape Rooms Media-Enhanced challenge course Live Stage Show Atlantis Aquarium Playground Main Attractions Mini rides and Attractions 4D Cinema Photo Call Driving school Play stage Big space with more than 20 interactive games Party rooms Main Attractions Wave Pool Spa Area Slides and loops Lazy River Children s area Main Attractions Mangrove Sea Lemur Interaction Otter Habitat Jungle Trail Interactions and pavilions Tropical birds Main Attractions Coral Reef Experience Shark Experience Penguin Encounter Big Main Tank Touch pools Interactions and pavilions VIP Diving experience (1) Illustrative figures and features. Actual figures will vary site by site. 22

4 IECs IECs: Strong pipeline of opportunities 7 centers under development (3 of them to open during the 2018 season) Already accomplished our 2018 19 goals Large pipeline for future opportunities Signed Contracts Center Location Real Estate Operator Concept Lease Agreement Signed Expected Opening (Calendar dates) THADER Murcia, Spain Merlin Properties Nickelodeon Mar-16 Q4-17 XANADU Madrid, Spain Intu Aquarium Jul-16 Q2-18 XANADU Madrid, Spain Intu Nickelodeon Jul-16 Q3-18 DOLCE VITA Lisbon, Portugal Intu Nickelodeon Jul-16 Q2-19 LAKESIDE London, UK Intu Nickelodeon May-16 Q2-19 TIMES SQUARE New York, US n.a. Lionsgate Aug-17 Q4-19 To be announced Europe n.a. Lionsgate Sep-17 Q1-20 FY17 Results Presentation 22

5 Selective acquisitions Unique track record sourcing, executing and creating value through acquisitions 18 transactions successfully completed across 10 countries since 2004 Target average EBITDA improvement of c.50% after 2 full seasons under Parques Reunidos management Implied EBITDA multiple paid (1) post integration of 5.8x Acquisition #Parks Country YearAcquired Bobbejaanland 1 Belgium 2004 BoSommarland 1 Norway 2006 Marineland 1 France 2006 Mirabilandia 1 Italy 2006 Warner 1 Spain 2007 Aqualud 1 France 2007 GrantLeisure 3 UK 2007 BonBonLand 1 Denmark 2007 Tusenfryd 1 Norway 2008 Faunia 1 Spain 2008 Palace Group(FECs) 31 US 2008 Hawaii 1 US 2008 Kennywood Group 5 US 2008 Movie Park 1 Germany 2010 Dutch Wonderland 1 US 2010 Slagharen 1 Netherlands 2012 Noah sark 1 US 2012 Miami Seaquarium 1 US 2014 ImpliedEBITDA multiplepaid (1) Total 54 5.8x All elements are in place to continue being the leading consolidator Notes 1. Based on EBITDA after 2 full seasons under Parques Reunidos operation 24

Attractive financial profile delivering growth 30.000 Visitors ( 000) 20.000 10.000 19.417 20.637 20.962 19.813 19.636 2013 2014 2015 2016 2017 Revenue ( MM) 541 543 606 584 579 2013 2014 2015 2016 2017 EBITDA ( MM) 167 170 195 188 174 2013 2014 2015 2016 2017 25

Relentless attention to detail and continuous reconsideration of every item of the cost structure Margins improvement driven by i) high drop through of incremental revenues, ii) operating leverage and iii) relentless focus on efficiency and benchmarking Cost item % of total costs 2017 EBITDA Margin Evolution Variable Costs COGS 16% 30.9% 31.2% 32.2% 32.3% 30.0% Personnel Costs 41% Operating Costs Other Operating Costs 39% Rents 4% 2013 2014 2015 2016 2017 26

Strong and visible cash flow generation 10 11% Recurrent capex as % of revenues No year-on-year operating working capital requirements Stable and resilient cash flow with high conversion rates of 60-70% Group reported recurrent capex Cash generated from change in working capital Group reported operating free cash flow (1) MM 150 100 50 54 71 62 72 67 MM 150 100 50 MM 150 100 50 113 98 133 116 107 4,4 0 % of revenue 2013 2014 2015 2016 2017 10.0% 13.2% 10.3% 12.4% 11.5% 0-50 (1,6) (2,4) (1,4) 2014 2015 2016 2017 0 Cash Conversion Rates (2) 2013 2014 2015 2016 2017 67.5% 57.8% 68.0% 61.5% 61.4% Notes 1. Defined as EBITDA Recurrent Capex 2. Defined as EBITDA Recurrent Capex /EBITDA 27

Capital structure designed to allow delivery of business plan 575 MM term loan facility (60%/40% /$ denominated) Debt Structure 200 MM multi currency revolving credit facility Natural hedged to act against currency fluctuations Local currency expenditures at each location Balanced capital structure between US debt and European debt Target capital Structure Current leverage of 3.0x Net debt / EBITDA On average 2.0x-2.5x target net debt / EBITDA in the medium term Dividend Policy 2017 dividend: 20 MM equivalent to a 39% pay-out ratio over pro-forma net income Dividend policy: 20-30% payout 28

Why Parques Reunidos? 6 1 Experienced and committed management team Leading global player with strong regional brands 5 Clear and welldefined strategy focused on growth Positioned in a growing market with highly attractive fundamentals 2 4 Solid and visible organic growth potential Best in class operator 3 30