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WELCOME TO OUR MEMBERS & THEIR GUESTS

The LPF October Seminar:

Urban Based Family Leisure KEYNOTE PRESENTATION FOLLOWED BY PANEL Q&A

Generously hosted by UK URBAN BASED FAMILY LEISURE EXPERIENCE IS ALL UK LEISURE 2

UK LEISURE MARKET FORECAST

Forecast UK Leisure Industry* Market Value, 2012-22 Value Growth Rates for Leisure Industry* Sectors UK LEISURE 3

WE ARE LIVING IN AN EXPERIENCE ECONOMY

UK Tenpin Bowling market rose by 28% in last 5 years

48% of Millennials UK Music prefer to spend on Festival & new leisure KEY Concert Market activities rather FACTS grew by 12% than ones they’ve from 2016 - tried (28% 2017 average)

61% of Millennials are actively seeking new Mintel activities to try (38% aveage) UK LEISURE 4

WE ARE ALL DOING MORE PHYSICALLY ACTIVE PURSUITS

Growth of 5km family In 2018 on an Parkrun is one of the biggest Parkrun. First running average Saturday sporting events in the world – Parkrun in 2004. events & 2k 250,000 runners (The Independent 4/9/18). Now 560 junior (2018 – 4.5m Now operates in 22 countries locations in UK events runners registered)

BBC reported in Oxygen Freejumping April 2017 that opened in 2015, by 28% of Brits tried 140+ parks have 2016 had five sites. trampolining – 50% among opened in the UK 16-25 year old women since 2014

Over 400 15% of Brits taken part in 29% of consumers OCR races an outdoor assault interested in trying an each year (50 course, 30% of 16-34 outdoor assault course – in 2012) year old men 44% Millennials

Mintel UK LEISURE 5

THE OUT OF HOME LEISURE MARKET CONTINUES TO GROW

34% of Brits feel they are 30% think they are spending spending more time out of home more money on leisure than a doing leisure activities – 50% year ago – 48% amongst amongst Millennials Millennials UK LEISURE 6

KEY MESSAGES

. Popular leisure activities are about ‘doing’ and ‘experiencing’

. More focus on health and less on drinking heavily

. Quality over quantity trend

. Nostalgic & child’s play activities appeal

. Sense of exclusivity

. Social media hugely influential but digital detox emerging

. Offers and discounts allow consumers to maintain habits UK LEISURE 7

LEISURE HEADWINDS AND CHALLENGES

. BREXIT uncertainty – Employment regulation – Decrease in immigration from EU – Reduction in available workforce – Will lead to increased wages

. Business Rates Rise

. National Living Wage

. Apprentice Levy UK LEISURE 8

TENPIN BOWLING UK LEISURE 9

TENPIN BOWLING MARKET

Value Forecast of the UK Tenpin Bowling Market, Top 10 Tenpin Bowling Operators, by 2011-21 Percentage Market Shares of Lanes, May 2017 UK LEISURE 10

Leading Tenpin Bowling Operators, by Number of Sites

Hollywood Bowl Group Plc AMF Bowling, Bowlplex, Hollywood Bowl 58

Tenpin Ltd Tenpin 43

MFA Bowl Ltd MFA Bowl 18

QLP Partnership Ltd Superbowl UK 8

Namco UK Ltd Namco Funscape 7

Big Apple Entertainments Ltd Big Apple, Superbowl, Strikes 6

Center Parcs Ltd Center Parcs 5

All Star Leisure Group Ltd All Star Lanes 5

Butlins Skyline Ltd Butlins 3

Bloomsbury Leisure Holdings Ltd Bloomsbury Bowling, The Lanes 2

Others Various 156 UK LEISURE 11

TENPIN BOWLING

. Bowling Market has previously had poor recessions with most restructuring or ditching units . Operators have slashed overheads and returned to profitability. Combined with significant refurbishment activity, the bowling market is seeing a resurgence . New openings for Superbowl in . Refurbishments Hollywood Bowl, Tunbridge Wells . Pricing often very competitive . Brands are diversifying their offer including: . Assault Course Games . Softplay . Arcade Games . Laser Quest . VR rooms . More extensive bar and meal offers UK LEISURE 12

TENPIN BOWLING

. Family Bowling Concepts – selectively acquiring sites on cinema anchored leisure parks – high footfall shopping centres . Size requirements 17,000 – 30,000 sq ft with rental parameters £8.00-£10.00 per sq ft . Group Activity -Further consolidation anticipated in market

. Urban Concepts such as All Star Lanes/Urban Bowl selective acquisition strategies-Limited roll out – more restaurant diners with bowling. City Centre locations . Size requirement – 12,000 – 15,000 sq ft . Can trade from basement or first floor space . Possible new entrants – Pinstripes from the US UK LEISURE 13

TRAMPOLINE PARKS UK LEISURE 14

TRAMPOLINE PARKS . A leisure development that arrived from the USA where trampoline parks are in their 14th year and continuing to grow: . Income is generated from 4 key areas: . 1 – pay to bounce . 2 – party activities . 3 – café . 4 – other leisure actives, Clip n Climb, Children’s soft climbing and softplay . retail – socks, etc . Location key: – needs easy access – good parking – high levels local residential . Warning – to be successful – while the fist UK trampoline parks were mainly kids only and for 7 year olds and above – the UK has found that customers get bored quickly. . It is therefore vital that new parks are ”entertainment” based and should feature more activities not just trampolines – 50% of the park should be trampoline based with 50% entertainment for all the family UK LEISURE 15

UK TRAMPOLINING OPERATORS

Operator Open & Planned Open Sites Sites 25 Ashford, Basingstoke, Blackburn, , Chatham, , , , Leicester, London (3), , , Preston, Rochdale, Sandwell, , Stoke, Aintree, Colchester, , Lakeside, 11 Aberdeen, , Elstree, Enfield, Harrogate, Poole, Shrewsbury, Slough, Tonbridge, Walsall, Warwick

9 Xscape Yorkshire , Maidstone, Norwich, Corby, Hull, Glasgow, Edinburgh, Bluewater, Xscape Milton Keynes

8 Acton, , , , Southampton, Stevenage, The O2 Greenwich, Wolverhampton

8 Bradford, Leyland, Lowton, Peterborough, Rochdale, Rotherham, Sheffield, Stockport

5 Edinburgh, Glasgow, Dundee, North Edinburgh (coming soon), London (coming soon)

4 Rotherham, Leeds, Sheffield, Lincoln

4 Solihull, Bristol, Croydon, Guildford

4 Manchester, , Beverley, Runcorn

2 Camberley, St Albans UK LEISURE 16

TRAMPOLINE PARKS

. 156 sites comprising 72 different operators . Top 5 brands include: . Flip Out . Gravity . Oxygen Free Jumping . Tramp2lean . Jump In . Selectively acquiring sites. Mixed use schemes, In Town and Out of Town sites . Leisure Parks and Shopping Centres . 12,000 – 30,000 sq ft . 6m min clear height . Rental parameters - £8 - £15 psf . Group Activity: further consolidation anticipated in the market UK LEISURE 17

GOLF UK LEISURE 18

GOLF

Increasing amount of mini/crazy golf operators in the UK. All with slightly different propositions including indoor and outdoor concepts, family golf to competitive socialising offers . Blurring of lines between family golf and the millennial market UK LEISURE 19

GOLF

The number of indoor and outdoor golf operators is increasing UK Golf Operators 2017 Mr Mulligans Golf 11 Paradise Island Adventure Golf 6 Plonk Crazy Golf 5 Adventure Golf 4 Junkyard Golf 3 TopGolf 3 Ghetto Golf 2 Roxys Ballroom 2 Swingers 2 The Lost City 2 Birdies 1 Dragon Quest 1 Puttshack 1 UK LEISURE 20

GOLF

. Indoor Family Golf selectively acquiring sites within shopping centres, leisure parks and retail parks. . Size 10,000 – 25,000 sq ft . Rental parameters - £8 - £10 psf

. Family Outdoor Golf . Size - Sites of between 0.5 acre to 1 acre

. Top Golf require up to 14 acre sites UK LEISURE 21

SOFTPLAY UK LEISURE 22

SOFTPLAY

. Continued growth of Soft Play centres all with slightly different propositions depending on the operator . Operators continue to diversify the model to include: . Adventure play areas . Assault course . Toddler and baby areas/toddler time . Multi-purpose studios . Nursery . Party zone . Outdoor messy play area . Café and restaurant offer UK LEISURE 23

SOFTPLAY UK Softplay Operators

Funkey Monkey 13 Eddie Catz 9 360 Soft Play 7 Jungle Mania 4 Kids Space 3 Gambado 3 Billy Beez 1 Go Kids Go 1 UK LEISURE 24

SOFTPLAY

. Requirement: 5,000 – 25,000 sq ft . Rent - £8 - £10 psf inclusive . Ground floor, first floor and basement considered . Minimum ceiling heights 3m – (ideally 5.5m – 7m) . Busy high streets, retail parks or shopping centres . Potential for pop up model NETWORK | ENGAGE | INFORM

WELCOME TO OUR MEMBERS & THEIR GUESTS

Keynote Presentation: Nigel Costain, Senior Director, CBRE

Our Panel:

Stephen Wilson ‐ Operations Director, Oxygen Freejumping

Kate Quaintance‐Blackford ‐ Director, QLP Ltd

Duncan Phillips ‐ Founder, 360 Play

Andrew Scholey ‐ Operations & Development Director, Adventure Leisure