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March 2019

Company Presentation

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Holmes Investment Properties

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 sites for each partner over the next 5 years HIP continues to explore further opportunities with other leisure operators; which may include additional operators on #EveryoneEntertained sites Recently completed first site acquisition in Croydon – Ashtour Golf Centre – and expect a positive effect on turnover following further development of the site Listed on the Berlin Exchange following 2016 reverse takeover

Business Overview

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Holmes Investment Properties

Chartered accountant with significant experience working for a number of large accounting firms before moving into industry where he held FD and CFO roles. Involved in two property based businesses, including i2, a leading UK based serviced office business, as FD and his own residential property company.

Martin Eberhardt Non-Executive Chairman

Joined the family business, Robert Homes & Co, to drive forward device-driven communications in line with customer

• expectations. Focused on building client

relationships and sales. Previously built up his own art gallery in Chelsea

Nicholas Holmes Non-Executive Director

Commercial mining expert and senior director within the financial markets. Non-Executive Director of Aurora Precious Metals and Director of Hetan Technologies S.A. and JH Group AG. Former CEO of Massard Capital Asset Management AG, Chief Marketing Officer and Director of Bluebull AG in Switzerland, and Head of Private Clients at IMB Vermögensverwaltung. Founded CityQuote.com, a provider of Financial Internet Applications

Arno Sardelic Non-Executive Director

Proven industry experience

The Board

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Holmes Investment Properties

Michael Simmonds CEO

With 25 years’ experience in the leisure sector, served as former senior director at David Lloyd Leisure between 2000 – 2007 and almost doubled the number of venues, doubled the Return on Capital Employed and increased satisfaction rates. Chief Executive and owner of World of Golf and under his tenure, the Return on Capital employed has doubled. Part-time CEO of NMGC Ltd, Director of Adventure Experience and Trustee of Moray Sports Centre

Grant Wright Head of Operations Jonathan Sutton Head of Property

Experienced management team

The Executive Team

Chartered Surveyor with 30 years’ experience in the UK retail, licensed/leisure, hotel, student housing and BTR sectors. Established Lewis Sutton Property Consultants in 2013 and holds other real estate linked executive positions within his respective spheres of expertise. Ex-British Army Soldier, having served five years with the Royal Corps of Signals as a Systems Engineer and left with the rank of Corporal. Over the last 14 years, developed expertise in the property finance sector, namely commercial, development and structured finance. Holds several Executive and Board Roles across multiple sectors.

James Holmes Managing Director

Entrepreneur with a wide spectrum of experience and knowledge across several sectors and also Chairman of the Governors of a London College. Built the first China focused education investment company as CEO and grew the investment portfolio by 130% and net assets by £5.5m. Current portfolio valued at c.€40m after four years.

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Holmes Investment Properties

£141bn UK spend by 2022

Brits forecast to spend £129 billion

• n leisure activities this year, a 17%

increase compared to five years ago. UK leisure market valued at £117bn by Deloitte in 2016, which accounts for 7.4% of GDP and has grown 5% annually since 2010

Leisure is attracting 1.5x more discretionary spend than retail, and the sector is growing twice as fast

The leisure property sector could become

• ne of the biggest beneficiaries of the UK

property investment market in 2018 due to the shortage of prime stock available in

• ther commercial property sectors

Over 120 trampoline parks in the UK – potential for at least 100 more*

Growing demand for more blended experience-led concepts and active leisure attractions, driven by health and wellness

The Market Opportunity

* according to independent study by BDA

£117bn – UK leisure market value

Capitalizing on the growing demand

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Holmes Investment Properties

• 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

• n 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

Strategy

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Holmes Investment Properties

Company Structure & Shareholdings

HIP Plc

UK Adventure Parks 100% Ashtour 100% Everyone Entertained Ltd (#EveryoneEntertained) 48%

David Lloyd Adventure Parks

(Adrenaline World) 15%

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Holmes Investment Properties

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

Partnering with high-quality leisure operators

Partnership agreements

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

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Holmes Investment Properties

• 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

Everyone Entertained Ltd

Lots to do, all under one roof

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Holmes Investment Properties

David Lloyd Adventure Parks

• 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
• nly 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

The UK’s largest indoor and outdoor multi-activity centre

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Holmes Investment Properties

Ashtour Ltd

• 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

World of Golf

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Holmes Investment Properties

Site Financing Model

Purchase Model (PropCo – Opco Model)

Acquire freehold or long leasehold

• Example Costs (55,000 Sq Ft)
• Purchase - £1-2m
• Build Cost - £5.5m
• Operator Fit Out - £3.6m

Financing Development

70-80% TDC - Development Finance 20-30% TDC - Equity / Loan Note Raise Long-term debt refinance 12 months post operation

Financing Fit Out Lease Model (Consolidated PropCo / OpCo)

Minimum 25 year occupational lease

• Example Costs (55,000 Sq Ft)
• Renovation / Conversion - £3m
• Operator Fit Out- £3.6m

Financing Renovation

80-90% TDC - EIS Funding / Long Term Commercial Debt 10-20% TDC - Equity / Loan Note Raise Long-term debt refinance 12 months post operation 90% - Lease Finance 10% - Equity / Loan Note Raise (5-7 year term @ circa 7% per annum – capital & interest)

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Holmes Investment Properties

• UK Leisure sector continues to expand, with growing demand for more ‘active’ leisure

entertainment

• Quality management team in place to best capitalize on growth opportunity
• High number of brownfield sites available for development or conversion
• Partnership agreements in place with recognized leisure industry figures and brands
• Shareholdings in Everyone Entertained Ltd and David Lloyd Adventure Parks – exposed

to additional upside

• 25-year leases will provide steady revenues

Investment Summary

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Holmes Investment Properties

Contacts:

HIP Registered Office: Holmes Investment Properties PLC Elder House, St Georges Business Park, 207 Brooklands Road, Weybridge, Surrey KT13 0TS

Corporate Advisers: Alexander David Securities Limited 49 Queen Victoria Street London EC4N 4SA david.scott@ad-securities.com Financial Public Relations: Yellow Jersey PR 30 Stamford Street London, SE1 9LQ HIP@yellowjerseypr.com

contact@hipplc.com