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March 2019 Company Presentation Business Overview Business Overview UK property investment company with a focus on developing projects within the leisure sector, in particular adventure parks The Company has agreements with two key leisure

  1. March 2019 Company Presentation

  2. Business Overview Business Overview UK property investment company with a focus on developing projects within the leisure sector, in particular adventure parks The Company has agreements with two key leisure activity operators to source, fund and develop adventure parks: • #EveryoneEntertained , of which HIP Plc is a 48% shareholder via EvEnt’s holding company, Everyone Entertained Ltd • Adrenaline World , a new concept developed by David Lloyd Adventure Parks, of which HIP Plc is a 15% shareholder HIP Plc is aiming to develop a minimum of 12 Recently completed first site acquisition in sites for each partner over the next 5 years Croydon – Ashtour Golf Centre – and expect a positive effect on turnover following HIP continues to explore further opportunities further development of the site with other leisure operators; which may include additional operators on Listed on the Berlin Exchange following 2016 #EveryoneEntertained sites reverse takeover Holmes Investment Properties 2

  3. The Board Proven industry experience Martin Eberhardt Nicholas Holmes Arno Sardelic Non-Executive Chairman Non-Executive Director Non-Executive Director Chartered accountant with significant Joined the family business, Robert Homes & Commercial mining expert and senior director experience working for a number of within the financial markets. Co, to drive forward device-driven large accounting firms before moving Non-Executive Director of Aurora Precious Metals communications in line with customer into industry where he held FD and CFO and Director of Hetan Technologies S.A. and JH expectations. Focused on building client roles. relationships and sales. Group AG. Involved in two property based Previously built up his own art gallery in Former CEO of Massard Capital Asset businesses, including i2, a leading UK Chelsea Management AG, Chief Marketing Officer and based serviced office business, as FD and Director of Bluebull AG in Switzerland, and Head of his own residential property company. Private Clients at IMB Vermögensverwaltung. Founded, a provider of Financial Internet Applications Holmes Investment Properties 3

  4. The Executive Team Experienced management team Michael Simmonds Jonathan Sutton James Holmes Grant Wright CEO Head of Property Managing Director Head of Operations Ex-British Army Soldier, having served Chartered Surveyor with 30 years’ Entrepreneur with a wide spectrum of With 25 years’ experience in the leisure five years with the Royal Corps of experience in the UK retail, experience and knowledge across several sector, served as former senior director at Signals as a Systems Engineer and left licensed/leisure, hotel, student sectors and also Chairman of the David Lloyd Leisure between 2000 – 2007 with the rank of Corporal. housing and BTR sectors. Governors of a London College. and almost doubled the number of Over the last 14 years, developed Established Lewis Sutton Property Built the first China focused education venues, doubled the Return on Capital expertise in the property finance sector, Consultants in 2013 and holds other Employed and increased satisfaction investment company as CEO and grew namely commercial, development and real estate linked executive positions rates. the investment portfolio by 130% and net structured finance. within his respective spheres of Chief Executive and owner of World of assets by £5.5m. Holds several Executive and Board Roles expertise. Golf and under his tenure, the Return on Current portfolio valued at c.€40m after across multiple sectors. Capital employed has doubled. four years. Part-time CEO of NMGC Ltd, Director of Adventure Experience and Trustee of Moray Sports Centre Holmes Investment Properties 4

  5. The Market Opportunity Capitalizing on the growing demand Leisure is attracting 1.5x more Over 120 trampoline parks in discretionary spend than retail, and the UK – potential for at least the sector is growing twice as fast 100 more* The leisure property sector could become Growing demand for more blended one of the biggest beneficiaries of the UK experience-led concepts and active property investment market in 2018 due to leisure attractions, driven by health the shortage of prime stock available in and wellness other commercial property sectors * according to independent study by BDA £141bn UK spend by 2022 £117bn – UK leisure market value Brits forecast to spend £129 billion UK leisure market valued at £117bn by on leisure activities this year, a 17% Deloitte in 2016, which accounts for increase compared to five years ago. 7.4% of GDP and has grown 5% annually since 2010 Holmes Investment Properties 5

  6. Strategy • Acquire sites under ‘option to purchase’ agreements, subject to planning permission • Focus is on easy-to-reach sites that meet HIP’s business model requirements based on its data including, specific geographic and demographic criteria • HIP will focus on sites with £1 million - £2 million valuation, with total acquisition and development cost expected to range between £5.5 million and £8.75 million, depending on specification • Utilise debt to supplement investment up to 80% of cost • Sites acquired through separate SPV’s and held via HIP Plc’s subsidiary UK Adventure Parks Limited or held by Everyone Entertained Limited depending on which exclusive partner • Once completed, sites will be leased to partners on 25 year agreements, providing long- term cash flow generation • Expansion of HIP’s strategy for flexibility to ensure shareholder benefits, given the change in the retail market Holmes Investment Properties 6

  7. Company Structure & Shareholdings HIP Plc Everyone Entertained Ltd Ashtour UK Adventure Parks (#EveryoneEntertained) 100% 100% 48% David Lloyd Adventure Parks (Adrenaline World) 15% Holmes Investment Properties 7

  8. Partnership agreements Partnering with high-quality leisure operators Exclusive agreements: • Everyone Entertained Ltd: Under the ‘ #EveryoneEntertained ’ brand, aiming to deliver multi-activity leisure venues geared to catering for families, parties and people of all ages and abilities. Activities include adventure golf, laser quest, escape room, large soft play, high ropes course, active arcade, clip & climb and VR paragliding • David Lloyd’s Adventure Parks: Under the ‘ Adrenaline World’ brand, providing more than 22 indoor and outdoor activities in a single location aimed at family and corporate events market Other partnership agreements: • Flip out: the UK’s leading trampoline park operator and the fastest-growing in the world, with over 65 outlets in 7 countries • Omni Fight Club : revolutionary concept in gym based, fitness conditioning • Teamsport Indoor Go Karting : One of the UK’s biggest operators - 24 kart tracks • Red Kangaroo Trampoline Parks: Currently has 3 locations in the UK • Costa Coffee: The UK’s largest coffee house chain Holmes Investment Properties 8

  9. Everyone Entertained Ltd Lots to do, all under one roof • Operating under the #EveryoneEntertained brand • 48% owned by HIP Plc • Managing Director and co-owner Grant Wright, ex-MD, David Lloyd Leisure, Europe and Founder of World of Golf • Will offer 8 activities in one site • Increased roll out plan for 25 sites in 5 years • Huge amount of land throughout the UK available for leisure venues – therefore low cost • Sites driving high margin business Holmes Investment Properties 9

  10. David Lloyd Adventure Parks The UK’s largest indoor and outdoor multi-activity centre • HIP Plc has 15% share in David Lloyd’s Adventure Parks, who will operate under the Adrenaline World brand • Contract with David Lloyd’s Operating Company to fund up to 12 sites on an exclusive basis • Long-term contractual rent of 8% yield on cost per annum per site with upwards only rent reviews • Funding partner signed to provide 50% of cost of each site as equity • Additional debt will be raised to complete the funding of the freehold land or long leasehold sites Holmes Investment Properties 10

  11. Ashtour Ltd World of Golf • Acquired for £500k in January 2018 • Golf centre in south-east London, with a golf range comprising 24 bays and an 18- hole adventure golf course • Also includes American Golf retail outlet on site • Ashtour Ltd continues to be a strong performing business • Potential to expand site to include other leisure activities • HIP also intending to invest in the site to improve and upgrade current golf offering Holmes Investment Properties 11

  12. Site Financing Model Purchase Model (PropCo – Opco Model) Lease Model (Consolidated PropCo / OpCo) Acquire freehold or long leasehold Minimum 25 year occupational lease • • Example Costs (55,000 Sq Ft) Example Costs (55,000 Sq Ft) • • Purchase - £1-2m Renovation / Conversion - £3m • • Build Cost - £5.5m Operator Fit Out- £3.6m • Operator Fit Out - £3.6m Financing Development Financing Renovation 70-80% TDC - Development Finance 80-90% TDC - EIS Funding / Long Term Commercial Debt 20-30% TDC - Equity / Loan Note Raise 10-20% TDC - Equity / Loan Note Raise Long-term debt refinance 12 months post operation Long-term debt refinance 12 months post operation 90% - Lease Finance Financing Fit Out (5-7 year term @ circa 7% per annum – capital & interest) 10% - Equity / Loan Note Raise Holmes Investment Properties 12


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