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Results Presentation 2015/16 David Armstrong Group CEO John Parker Group CFO November 2016

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Page 1: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

Results Presentation

2015/16

David Armstrong – Group CEO

John Parker – Group CFO

November 2016

Page 2: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

DISCLAIMER

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, JAPAN OR CANADA. THE DISTRIBUTION OFTHIS PRESENTATION IN OTHER JURISDICTIONS MAY BE RESTRICTED BY LAW AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT, ANDOBSERVE, ANY SUCH RESTRICTIONS.

This document is personal to the recipient and has been prepared and issued by Wasps Finance plc (the “Issuer”), Wasps Holdings Limited and Arena Coventry Limited (together with the Issuer, the “Company”) and is the

joint responsibility of the Company. It has been prepared solely for use at a presentation to relevant persons (as defined below) in connection with the proposed offer of bonds by the Issuer (the “Bonds”) and the application

for admission of the Bonds to the Official List of the UK Listing Authority and to the London Stock Exchange plc (the “London Stock Exchange”) for theBonds to be admitted to trading on the London Stock Exchange’s Regulated Market and through the electronic order book for retail bonds of the London Stock Exchange. For the purposes of this notice, the presentation that

follows (the “Presentation”) shall mean and include the slides that follow, the oral presentation of the slides by the Company, the question-and-answer session that follows that oral presentation, hard copies of this document

and any materials distributed at, or in connection with that presentation.

This Presentation is for information purposes only and does not constitute or form part of, and should not be construed as constituting or forming part of any offer, invitation or inducement to sell or issue, or any solicitation of any offer to purchase the Bonds, nor shall any part of this Presentation nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a

recommendation regarding the securities of the Company or of any other entity. Any decision to purchase the Bonds should be made solely on the basis of the information contained in the prospectus to be published by the

Company in due course. This Presentation does not constitute a recommendation regarding the securities of the Company.

No reliance may be placed for any purposes whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness. No representation or warranty, express or implied, is given by or on

behalf of the Company, Investec Bank plc or any of such persons’ directors, officers, advisers, agents or employees or any other person as to the accuracy or completeness of the information or opinions contained in this

Presentation and, to the extent permitted by law, no liability whatsoever (in negligence or otherwise) is accepted by the Company, Investec Bank plc or any of

such persons’ respective members, directors, officers, advisers, agents or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise

arising in connection therewith. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts

contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future. The information set out herein may be subject to updating, completion, revision,

verification and amendment and such information may change materially. The Company is not under any obligation to update or keep current the information in the Presentation.

This Presentation and its contents are confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose and are intended for

distribution only to persons who are: (A) (i) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order

2005 (the “Order”); or (ii) persons falling within Article 49(2)(a) to (d) of the Order or (iii) persons to whom it can otherwise lawfully be distributed and (B) (i)persons in Member States of the European Economic Area who are Qualified Investors (as defined in Article 2(1)(E) of EU Directive 2003/71/EC as amended (the “Prospectus Directive”) and/or (ii) persons in the

United Kingdom who are Qualified Investors as defined in s86(7) of the Financial Services and Markets Act 2000, as amended (“FSMA”) (all such persons together being referred to as “relevant persons”). This

Presentation must not be acted upon by persons who are not relevant persons.

Investec Bank plc is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting for the Company and no one else in connection with the Bonds and will not be responsible to anyone

other than the Company for providing the protections afforded to clients of Investec Bank plc or for providing advice in relation to the Bonds or any other matter referred to herein. Investec Bank plc has not authorised

the contents of, or any part of, this Presentation.

This Presentation does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction in which such offer or sale would be unlawful prior to registration, exemption from registration or

qualification under the securities laws of any jurisdiction. The Bonds have not been and will not be registered under the US Securities Act of 1933, as amended (the

“Securities Act”) or under any securities laws of any state of the United States and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration

requirements of the Securities Act. The information contained in this Presentation does not constitute an offer of securities for sale in the United States, nor may the Bonds be sold in the United State absent a registration or an exemption from registration as provided in the Securities Act. Any failure to comply with this restriction may constitute a violation of the laws of the United States.

Certain statements in this Presentation are forward-looking statements. The forward looking statements include statements typically containing words such as “intends”, “expects”, “anticipates”, “targets”, “plans”, “estimates”

and words of similar import. These forward-looking statements speak only as at the date of this Presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of

known and unknown risks, uncertainties and assumptions that could cause actual results, performances and achievements of the Company and its subsidiaries and investments to differ. The forward-looking statements

are based on numerous assumptions regarding the Company’s present and future business strategies and environments in which the Company may operate in the future and such assumptions may or may not prove to be

correct. No statement in this Presentation is intended to be nor may it be construed as a profit forecast. No one undertakes to update or revise such forward-looking statements.

By attending the Presentation or by accepting this document you will be taken to have represented, warranted and undertaken that: (i) you are a relevant person (as defined above); (ii) you have read and agree to comply

with the contents of this notice; and (iii) you will not at any time have any discussion, correspondence or contact concerning the information in this Presentation with any of the directors or employees of the Company, its

subsidiaries nor with any of their suppliers, customers, sub-contractors or any governmental or regulatory body, or otherwise distribute this Presentation,

without the prior written consent of the Company.

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Page 3: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

ANNUAL FINANCIAL HIGHLIGHTS

• Very important transition year with first full year of ownership of ACL and

completion of key projects

• Strong performance on the pitch reaching Aviva Premiership play-off and the

semi-final of the European Champions Cup

• Re-launch of the Ricoh Arena as a major entertainment venue with 4 bowl and

3 indoor concerts in the year bringing over 120,000 people to the Arena

• Completed the refurbishment of the DoubleTree by Hilton which is performing

well ahead of expectations

• Signed new partnership with Ericsson, Lear, Coca-Cola and Matrix to sit

alongside long-term deals with JLR, EMC, Hilton, Compass, DS Smith, Heineken,

Purity and Majestic

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Page 4: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

FINANCIAL HIGHLIGHTS 2015/16

‘Earnings before interest, tax , depreciation, amortisation, exceptional items and allocation to non-controlling interests

2015/16 2014/15 Change

Turnover 30,931 21,407 + 44 %

Gross Profit 10,363 5,318 +95%

Gross Margin % 33.5% 24.8%

EBITDA' (2,199) (1,669) - 32 %

Net Loss for the year (2,272) (6,323)

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Page 5: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

FINANCIAL HIGHLIGHTS (Continued)

• Revenue increased by 44% with growth across all segments

• EBITDA loss of £2.2m compared with 2014/15 loss of £1.7m

• Gross margin up by 8.7% to 33.5%

• Asset cover ratio 1.7 times (Bond covenant set at 1.4 times)

• Ricoh Arena and P share valuations unchanged

• Profit performance not as strong as hoped due to:

• timing of partnership acquisitions

• extended closed period in the hotel

• adverse contribution of MTV crashes event

• negative impact of RWC

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Page 6: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

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OPERATIONAL KPIs

2016 2015

League position 3rd 6th

Average attendance 16,916 11,401

EBITDA (2,199) (1,669)

Total event days 139 121

Hotel Rev Par £41.72 £36.00

F&B spend per head (Rugby) £5.81 £4.97

Page 7: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

REVENUE SPLIT – 2015/16

• Strong growth across all segments, especially entertainment

2016 2015

£ £

Sport 12,214,843 Sport 8,688,213

Business 9,648,304 Business 7,273,768

Entertainment 1,403,775 Entertainment -

Hotel 1,603,838 Hotel 1,176,065

Sponsorship & venue 5,894,601 Sponsorship & venue 4,268,547

30,765,362 21,406,593

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Page 8: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

WASPS RUGBY HIGHLIGHTS

• 3rd in the Aviva Premiership, semi finals of European Champions Cup

• Average attendance of 16,916 versus 11,401 in 2014/15, impacted by the effort

of RWC which had an estimated impact of 25,000 – 30,000 on total attendance

• Ticket income up 19%, hospitality and sponsorship income up 86%

• Season sales for 2015/16 up 24% and hospitality sales up over 60% for 2016/17

• New central deal with RFU will increase annual income by £1.2m over 8 years

• Training facility at Broadstreet opened and very successful

• Squad strengthened for 2015/16 with additions of Danny Cipriani, Kyle

Eastmond, Tommy Tayler, Matt Symons, Kurtley Beale and Willie LeRoux

• Launch of Wasps netball for 2016/17 will be exciting for extension of the brand

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Page 9: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

ACL / IEC HIGHLIGHTS

• First 3 quarters were strong for conference and exhibition business but 4th

quarter was weaker, with overall revenue up 38%

• Hotel conversion has proved very successful with Rev Par over £40 (compared

with £36 in 2014/15) but delays in the project meant lost room nights of over

5,000

• New Compass agreement working smoothly

• Music strategy in 2015/16 now very successful gigs like Bruce Springsteen,

Rhianna, Jess Glynne, plus MTV Crashes which was disappointing in attendance

terms

• Railway station open and operating for match days

• 4 Nations Rugby League and International Netball signed up for 2016/17

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Page 10: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

COMMERCIAL PARTNERSHIPS

• Ricoh Naming Rights deal remained in place throughout the 2015/16 financial

year. Several conversations still ongoing but no partner at contract stage yet

• Exciting new JV with Ericsson announced to implement the connected venue

project – will generate £600k + of incremental profit when fully live

• UnderArmour relationship growing strongly with retail ranges performing very

well

• Extensions in place with JLR, EMC, DS Smith and all beverage partnerships

operating very well

• Lear announced as Academy sponsor

• Matrix on board as gym equipment partner with over £100k of equipment at

Broadstreet and new training centre

• In total 18 partnerships now in place compared with 13 a year ago10

Page 11: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

OUTLOOK

Page 12: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus

OUTLOOK 2016/17

• Strong year expected with all building blocks in place

• Improved profitability driven by:

• increased central income from PRL/RFU

• strong pipeline of C&E business

• higher ticketing and hospitality revenue

• full year of hotel income and strong Revpar

• cost saving from whole business fully settled in Coventry

• new sponsors in place – Ericsson, Lear, DS Smith, Coca-Cola, Matrix

• first stage of connected venue Wi-Fi project

• changes to entertainment strategy

• On track for first 3 months of the year

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Page 13: Results Presentation 2015 - Northcote Internet...WASPS RUGBY HIGHLIGHTS • 3rd in the Aviva Premiership, semi finals of European Champions Cup • Average attendance of 16,916 versus