Presentation to Investors 15 March 2018 Table of Contents Slide - PowerPoint PPT Presentation

Presentation to Investors 15 March 2018

Table of Contents Slide Corporate Structure 3 Low-Risk Financial Structure 4 Description of Integrated Resort Business: • Partnership with Melco Resorts and 5 Entertainment Ltd. • City of Dreams Manila-World Class Product 7 • PAGCOR License 8 • Comparison of listed licensees 9 • Map of Entertainment City 10 Pacific Online Systems Corporation 12 Presentation to Investors 15 March 2018 Slide 2 of 14

Corporate Structure of Premium Leisure Corp. Minority Shareholders 6.7 billion shares 24.9 billion shares 78.7% of issued shares 21.3% of issued shares 224.3 100% of issued shares million shares 50.1% of issued shares • Lease of Lottery and Keno • Unlisted holding equipment company with PAGCOR • Listed on PSE (LOTO) license • Operating agreement with Melco for City of Dreams Manila Presentation to Investors 15 March 2018 Slide 3 of 14

Low-Risk Financial Structure 3. Healthy Balance Sheet 1. Superior Downside Protection PLC, through PLAI, collects a fee even No debt. when there are operating losses in City of Dreams Manila. Consolidated Stockholders’ equity of ₱16.2billion as of 31 December 2017. Relatively low overhead, and no interest costs. 4. Attractive Dividend Play Transparent dividend policy: at least 80% of unrestricted retained earnings to be paid out by the succeeding year. Dividends during 2015-18 : 2. Strong Cash Flow Generation - April 2015: ₱ 0.0221/share or ₱700M (approx. 95% of dividendable retained earnings). No capex requirement. -March 2016: ₱0.0215/share or ₱680M (approx. 99% Pacific Online is a reliable dividend stock. of dividendable retained earnings). -March 2017: ₱0.0281/share or ₱888M (approx. 81% of dividendable retained earnings). -March 2018: ₱0.0439/share or ₱1,389M (approx. 81% of dividendable retained earnings). Presentation to Investors 15 March 2018 Slide 4 of 14

Partnership with Melco  Relationship between the Philippine subsidiary of Melco Resorts and Entertainment Limited (Melco) and PLAI is governed by the following agreements:  Cooperation Agreement between Melco, Belle and PLAI  Operating Agreement between Melco and PLAI  Melco is the only Macau-based operator running an integrated resort in the Philippines. Presentation to Investors 15 March 2018 Slide 5 of 14

Partnership with Melco: Sharing of Gaming Earnings PLAI is entitled to the HIGHER of: City of Dreams Manila EBITDA Sharing 50% of MCP’s gaming EBITDA computed without 1. Gross Gaming Revenue deducting lease expenses but after deducting: Less: PAGCOR License Fees • Management allowance for 2% of Net Win, where Net Gaming Revenue “Net Win” is defined as: Less: Management allowance (2% of Net Win) − For mass market = Net Gaming Revenue Less: Operating Expenses (excluding lease − For VIP = Net Gaming Revenue less expenses paid to Belle) commissions, marketing/ incentives & bad debts expenses Gaming EBITDA • Incentive fee of 7% of EBITDA Less: Incentive fee (7% of Gaming EBITDA) -OR- Gaming EBITDA for sharing 2. A percentage of Net Win as follows: PLAI share (higher of 50% of Gaming EBITDA or • For mass market – 15%; and a percentage of Net Win) • For VIP – 5% Presentation to Investors 15 March 2018 Slide 6 of 14

City of Dreams Manila - World Class Product • Approximately 30 hectares of total gross floor area • More than 2 hectares of gaming space ; allowed up to 375 tables and about 3,400 slots/ ETGs • Approximately 2 hectares of retail and restaurants • World-class hospitality and entertainment facilities Presentation to Investors 15 March 2018 Slide 7 of 14

PAGCOR License  The term of the license is concurrent with PAGCOR’s congressional franchise, which expires in 2033 renewable for another 25 years by the Philippine Congress.  The City of Dreams Manila consortium was the first of the four licensees to have its license converted from a Provisional to a Regular license, by virtue of completing all license requirements to PAGCOR’s satisfaction.  The requirements under the PAGCOR license include: Item Terms Status Item Terms Status Complied, with more than Complied, with more than Minimum of USD 1Bn, USD 650Mn upon opening Total investment Minimum of USD 1Bn, USD 650Mn upon opening Total investment USD1Bn upon opening US$1 billion upon opening Complied, with more than 900 At least 800 with average floor area of at least 40sqm Hotel Rooms At least 800 rooms with average floor area of at least 40sqm Complied, with 941 rooms Hotel Rooms rooms Opening Gross Floor Complied, with more than Opening Gross Floor Complied, with more than At least 250,000 square meters upon opening At least 250,000 square meters upon opening 300,000 sqm upon opening Area Area 300,000 sqm upon opening Retail and F&B Area At least 20,000 sqm upon opening Complied At least 20,000 sqm upon opening Complied Retail and F&B Area Complied – DreamPlay Entertainment Feature At least USD 20-25Mn to build, fit-out & equip Entertainment Feature At least USD 20-25Mn to build, fit-out & equip Complied Not to exceed 7.5% of total gross floor area (maximum) Complied Total Gaming Space Not to exceed 7.5% of total gross floor area (maximum) Complied Total Gaming Space Gaming Equipment 1 table for every 4 rooms / 1.5 slots for every room Complied. Approx. 375 tables Gaming Equipment 1 table for every 4 rooms / 1.5 slots for every room Complied. Approx. 380 tables Enhanced for City of Dreams Manila’s higher quality rooms and 3,400 slots/ ETGs allowed. Ratio Enhanced for City of Dreams Manila’s higher quality rooms and 3,400 slots/ ETGs allowed. Ratio Based on Gross Gaming Revenue (GGR) = 25% + 2%* for Based on Gross Gaming Revenue (GGR) - (25% + 2%* Mass Mass tables; 25% for Slots; 15% for VIP tables Complied License Fee Complied License Fee tables; 25% mass slots; 15% VIP) * - Cultural Heritage Foundation contribution Presentation to Investors 15 March 2018 Slide 8 of 14

Comparison of listed Philippine Integrated resort licensees PLC is a one of a kind, yield-generating investment opportunity in the Philippine gaming space. Premium Melco Bloomberry Travellers Leisure Corp Philippines Resorts International City of Dreams Solaire Resort Resorts World City of Dreams Property Manila Manila Manila Melco Bloomberry Genting Operator Melco Hotel, Retail and Hotel, Retail and Hotel, Retail and Business Pure Gaming, no Casino operations Casino operations Casino operations debt, no capex Model and capex and capex and capex 50.1% of Pacific None None None Other Gaming Business Online At least 80% of Subject to Board Subject to Board Subject to Board Dividend Policy discretion and SEC discretion and SEC discretion and SEC unrestricted rules rules rules retained earnings from the previous year Presentation to Investors 15 March 2018 Slide 9 of 14

Map of Entertainment City, Philippines Presentation to Investors 15 March 2018 Slide 10 of 14

Pacific Online Systems Corporation Listed in the Philippine Stock Exchange with symbol “LOTO”  Develops and manages online computer systems, terminals and software for the  parimutuel gaming industry.  Leases to the Philippine Charity Sweepstakes Office (PCSO) on-line lottery and Keno equipment and accessories:  Lease rates of 7.7% and 15% for lottery and Keno sales, respectively. Equipment lease agreement with the PCSO up for renewal in 2018 for Lottery and in 2020  for Keno. Holds Supply and Service Contracts with:   Scientific Games Worldwide Ltd., a global marketing and technology leader in lottery. Intralot SA Integrated Lottery Systems & Services, a leading supplier of integrated gaming  and transaction processing systems. Presentation to Investors 15 March 2018 Slide 11 of 14

Pacific Online Systems Corporation Select Financial Information (amounts in Php Millions): Operations Highlights: 2013-2016 Business PCSO Sales No. of Terminals Unit (PHP Billions) Year Year Year Year 31 Dec. 31 Dec. 31 Dec. 31 Dec. 2014 2015 2016 2017 2014 2015 2016 2017 LOTTO 12.4 12.5 12.1 13.5 4,036 4,088 4,157 4,205 KENO 2.8 3.5 4.3 5.4 1,261 1,770 2,020 2,400 Source: Pacific Online Presentation to Investors 15 March 2018 Slide 12 of 14

Pacific Online Systems Corporation Dividends (in Php Millions, except per share amounts): 2010 2011 2012 2013 2014 2015 2016 2017 Regular 94.6 99.9 97.5* 140.1 147.3 175.5 179.1 358.1 - per share 0.50 0.50 0.50* 0.50 0.50 0.60 0.60 0.80 Special 48.2 - - 56 - - 319.3* - per share 0.25 - - 0.20 - - 0.88* Total 142.8 99.9 97.5* 196.1 147.3 175.5 498.4 358.1 -per share 0.75 0.50 0.50* 0.70 0.50 0.60 1.48 0.80 *Special stock dividend of ₱0.50/share plus special cash dividend of ₱0.38/share. Stock Price (in Php per share): Source: Bloomberg Presentation to Investors 15 March 2018 Slide 13 of 14