62.8m £411m 105(3) 23 - Merlin Entertainments

Europe’s leading and the
world’s second largest visitor
attraction operator, running
iconic global and local brands,
throughout the world.
(1) 2014 Annual
62.8m
visitors
£1,249m 2014 Revenue
(2)
£411m
(3)
105
WORLD OF ATTRACTIONS
23
UK ATTRACTIONS
TM
Birmingham
Blackpool
Brighton
Great Yarmouth
Hunstanton
Loch Lomond
London
Manchester
Scarborough
Weymouth
and Tower
NORTH AMERICA ATTRACTIONS
TM
Arizona
California
Charlotte
Dallas
Kansas City
Michigan*
Minnesota
Orlando*
Hollywood
Las Vegas
New York
Orlando*
San Francisco
Washington DC
San Francisco
Blackpool
Edinburgh
London
Warwick
York
Atlanta
Boston
Chicago
Dallas
Kansas City
Toronto
Westchester
California
Florida
Orlando*
TM
Gweek
Oban
Blackpool
London
Alton
Chessington
Warwick
Chertsey
London*
Windsor
Manchester
London
Blackpool
TM
Bangkok
Beijing
Hong Kong
Singapore
Shanghai
Tokyo
Wuhan
Amsterdam
Berlin
Vienna
Amsterdam
Berlin
Hamburg
Lake Garda
AUSTRALIA / NEW ZEALAND
ATTRACTIONS
Billund
Günzburg
TM
TM
Milan
*
Opening 2015
(peak season)
Global leader in branded, location
based family entertainment; No. 1
in Europe and No. 2 worldwide
Diversified across geographies,
demographics and against weather
Soltau
Berlin
Istanbul*
Oberhausen
Employees
Proven growth strategy
Osaka*
Tokyo
TM
Benalmadena
Berlin
Blankenberge
Bray
Gardaland
Hannover
Helsinki
Istanbul
Jesolo
Königswinter
Konstanz
München
Oberhausen
Paris
Porto
Scheveningen
Speyer
Timmendorfer
Strand
Countries
across 4
continents
Emphasis on “fun learning”
EUROPE ATTRACTIONS
Malaysia
Attractions
+ 11 hotels &
3 holiday
villages
Owner and operator of a unique
portfolio of iconic branded visitor
attractions
ASIA ATTRACTIONS
Bangkok
Busan
Shanghai
c26,000
2014 EBITDA
Auckland
Melbourne
Mooloolaba
Sydney
Manly
Sydney
Hamilton Island
Sydney
Sydney
Otway
Illawarra
Mount Hotham
Falls Creek
Track record of consistent long term
growth, highlighting the resilience
of Merlin’s business model
Progressive dividend policy
The Three Pillars of Our Portfolio
Midway Attractions
Legoland Parks
- 92 attractions - leading brands
- “Chainable”, low capex city centre or resort based
- Primarily indoor visitor attractions with 1-2 hour
dwell time
- Long track record of successful new attraction
developments
- 38.1 million visitors in 2014
(1)
- Compelling , unrivalled proposition to families,
increasingly with on-site accommodation
- Resort destination theme parks in densely
populated European markets
- 6 LEGOLAND Parks, 4 hotels and 2 Holiday
Villages
- 6 parks and 1 waterpark, 7 hotels and 1 Holiday
Village
- 2 new parks in Florida and Malaysia since 2011,
with LEGOLAND Dubai scheduled to open
in 2016, and LEGOLAND Japan and Korea in
2017
- Increasingly with on-site accommodation
- 12.7 million visitors in 2014
(1)
Includes joint ventures and management contracts
(2)
Resort Theme Parks
Underlying, excluding exceptional items
(3)
(1)
As at Dec 27 2014
- Leading national theme parks offering one to
three day visits
- 12.0 million visitors in 2014
www.merlinentertainments.biz
Our Strategy
Unique Portfolio
- Natural Hedge
To create a high growth, high return, family entertainment company
based on strong brands and a global portfolio that is naturally balanced
against the impact of external factors.
Geography (%)
13
Long Term, Robust Growth
22
Merlin Group Revenue 2000 – 2014 (£m)¹
2
tussauds
2007
1.
2.
28
30
36
44
77
2000
2001
2002
2003
2004
2005
1,192
1,249
946
662
769
Weather (%)
801
Indoor
484
40
190
2006
AsiaPac
26
2
sag
2011
1,074
25
60
2007
C
ontinental Europe
N
orth America
39
LLA
2012
gardaland
2006
legoland
2005
UK
2008
2009
2010
2012
2011
2013
Outdoor
Based on 2014
revenue
2014
Currency as reported. Non-December year ends calendarised. Includes acquisitions as annotated on the chart
Acquisition of Sydney Attractions Group in 2011 and Living and Leisure Australia in 2012
Proven & Sustainable Growth Strategy
1. Growth Of Existing Estate Via Planned
Investment Cycles
- Continual phased investment in new rides, features and shows
across all 105 attractions
- Driving customer satisfaction, increasing capacity and providing
new compelling propositions to guests
- E .g. the launch of new rides and attractions at Alton Towers and
LEGOLAND California in 2014
4. Roll-Out Of Midway Attr actions
- Merlin has 5 core chainable Midway brands with further brands
under development
(4)
- Merlin has opened 19 new Midway attractions in the last three
years
- 100 further potential roll out locations identified, targeting an
average of 6-7 openings per annum
2. Str ategic Synergies
5. Legoland Park Developments
- Maximising the marketing, operational and buying synergies
available as a result of Merlin’s scale and range of iconic brands
- In the last 4 years Merlin has opened new LEGOLAND Park
developments, in Florida and Malaysia
- E.g. Merlin Annual Pass, national promotions with strategic
partners, procurement and product development cost savings
- Potential for up to 20 new LEGOLAND Park developments
worldwide. Merlin has announced plans for Parks in Dubai (2016),
Japan and South Korea (both 2017) and is exploring further
potential sites in Asia and North America
3. Resort Destination Positioning
6.Str ategic Acquisitions
- Continuing to develop the positioning of our theme parks as short
break destinations
- Targeted strategic acquisitions
- Extending catchment area, driving new revenue streams and
additional spend, and improving guest satisfaction
- E .g. a new fully themed 152 room LEGOLAND hotel to open at
LEGOLAND Florida in May 2015
- Adding new brands, expanding into new geographies and
supporting strategic growth
- E.g. Merlin acquired Living and Leisure Australia in 2012 which has
added 9 new sites to the growing portfolio of Midway Attractions in
Asia-Pacific and created clusters of attractions in Shanghai and Bangkok
Merlin Magic Making - Unique in-house creative and production resource
-Merlin Magic Making is the creative and production resource at the heart of everything that
Merlin delivers
-The 300 strong team is responsible for everything from finding new attractions, to producing the
wax figures for Madame Tussauds, to designing and building new rollercoasters
-In 2014, Merlin's Magic Wand teams enabled 64,000 seriously sick, disabled and disadvantaged
children to visit Merlin attractions
(4)
2
Includes Turkuazoo Aquarium which was a standalone acquisition that has since been rebranded SEA LIFE
www.merlinentertainments.biz
Management Team & Board
Our History
Highly experienced and committed
management team with a combined tenure of
over 100 years*
Sir John Sunderland - Non-Executive Chairman
Appointed in December 2009, Sir John Sunderland is the former
Chairman and Chief Executive of Cadbury Schweppes plc and was
President of the CBI from 2004 until 2006. He is currently a Nonexecutive director of Barclays Bank PLC and an adviser to CVC
Capital Partners.
Nick Varney - Chief Executive Officer
Appointed Chief Executive Officer in 1999, Nick Varney has more than
22 years of experience in the visitor attractions industry. In 1999 he led
the buyout of Vardon Attractions to form Merlin.
1979 First SEA LIFE Centre opens in
Oban, Scotland
1992 SEA LIFE Centres, acquired by
Vardon plc, merged with London/
York Dungeons to form Vardon
Attractions Ltd.
1996 First German SEA LIFE Centre
opens
1999 MBO backed by Apax to form
Merlin Entertainments Group
2000-06 Major expansion of SEA LIFE
Centres and Dungeons in
continental Europe
2004 Secondary MBO backed by
Hermes
2005 Tertiary MBO backed by
Blackstone (May) Acquisition of
LEGOLAND Parks (July)
2006 Acquisition of Gardaland
Andrew Carr - Chief Financial Officer
2007 Acquisition of The Tussauds Group
Appointed Chief Financial Officer in 1999. Andrew played a key role in
the management buyout of Vardon Attractions to form Merlin. Before
joining Vardon he was a head of a regional corporate finance department
at KPMG.
2010 CVC acquire 28.1% stake in
Merlin
2010 Operating contract for UK’s
Blackpool Tower Complex
* Senior management
2010 Acquisition of Cypress Gardens,
reopened as LEGOLAND Florida
in October 2011
Investment Highlights
2011 Acquisition of Sydney Attractions
Group and Kelly Tarlton’s
Underwater World
2012 Acquisition of Living & Leisure
Australia
Global leader in branded, location based family entertainment; No. 1 in
Europe and No. 2 worldwide
2012 LEGOLAND Malaysia opened
Owner and operator of a unique portfolio of iconic branded visitor
attractions
2013 Listed on the London Stock
Exchange
Emphasis on “fun learning”
2014 Inaugural dividend payment
Proven growth strategy
Diversified across geographies, demographics and against weather
Our Contacts
Track record of consistent long term growth, highlighting the resilience of
Merlin’s business model
Alistair Windybank / Simon Whittington
+ 44 (0)1202 440082
[email protected]
Progressive dividend policy
(5)
Total Revenue (£m)
1,074
1200
900
801
1,192
1,249
300
600
200
300
100
306
411
346
256
2011
2012
2013
2014
Total revenue CAGR +11.8%
Underlying, excluding exceptional items
(5)
2011 on 53 week basis
2010
Sally Ann Wilkinson
+44 (0)20 8899 6110
[email protected]
FINANCIAL PR ENQUIRES
0
2010
3
CORPORATE & CONSUMER PR
ENQUIRIES
390
400
946
0
(2)
(2)(5)
EBITDA (£m)
500
1500
INVESTOR RELATIONS
2011
2012
2013
2014
Tulchan Communications
Susanna Voyle / Victoria Huxster
+44 (0)20 7353 4200
[email protected]
Total EBITDA CAGR +12.6%
www.merlinentertainments.biz