XREALITY GROUP LTD — Investor Presentation 2015

Feb 17, 2015

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A visionary adventure leisure company formed to build and operate world class indoor skydiving facilities across the region

Investor Update Presentation February 2015

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Contents

1. Operations Update

2. Half Year Results

3. Australian Roll-out

4. Asian Expansion

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1. Operations Update

• Record Sales for December exceeding $1m

• January Revenue exceeding $700k

• Strong Gift Voucher Sales

• Unearned Revenue Balance over $1.4m (excluding third party sales)

• Trend of High Utilisation continues

• System processes and procedures tested and performed satisfactory during a high tempo operational period

• Strength in Systems to roll out to future sites

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2. Half Year Results

	Dec14(‘000)	Dec13(‘000)	%Change
Revenue	$3,185	$82	3,784
EBITDA	($1,597)	($1,017)	57
Operating Margin (operational facilities)	43%	n/a	n/a
NPAT	($1,995)	($1,165)	71
Cashflow from operations	$241	$2	11,950

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2. Half Year Results

Key Drivers

Tunnel based Revenue remained strong across the period, with increases in Revenue observed during each school holiday period.

ISA Group maintains a sound Balance Sheet. This is as a result of the continuing contribution from Tunnel operations as well as the Capital Raise conducted in November 2014.

• The Convertible Note Facility has been completely repaid and management expect it will lapse prior to the end of the Financial Year with a zero balance.

• The Balance Sheet is free of all funding related debt.

• Remaining Cash and cash equivalents are expected to be sufficient to support the completion of both the Gold Coast and Perth projects (under existing timing and cost assumptions).

At a Group level the results were heavily impacted by Performance Based Share expenses ($1.472m), which were higher than forecast as a result of Milestones associated with the Gold Coast project being achieved earlier than planned. We do not expect the Performance Based Share expenses for the full year to exceed $1.9m.

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2. Half Year Results

Average Weekday Revenue Mix

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9%
6%,
50%
35%
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First timers Professional Groups/Events Merchandise

Average Weekend Revenue Mix

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7%
10%
19%
64%
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First timers Professional Groups/Events Merchandise

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2. Half Year Results

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Typical Utilisation Rates
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Midweek Weekend School Holidays Overall
Utilisation Potential
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Age of Flyers

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30%
25%
20%
15%
10%
5%
0%
up to 5 6 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 over 70
Age Group
% of total flyers
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Percentages based on 15 hrs/day 364 days/year

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3. Australian Rollout

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Development Construction Construction Tunnel Commissioning
Approval Commencement Certificate Apr/May Open to Public
Received Aug/Nov
Jul 2014 Jan 2015 Dec 2015
Commencement Design Development Tunnel Components
Of Tunnel Fabrication Complete Shipping May/Jun
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3. Australian Rollout

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Construction Development Commencement Application Submitted DA + 3 months ~~Dec 2014~~ Expected Development Approval Apr/May

Dec 2015 Tunnel Components Shipping/Arrival DA + 8 months

Tunnel Commissioning Open to Public Mid 16

~~Jun 2016~~

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Expected Construction Commencement Of Shopping Complex

Developer Funded Model

~~Dec 2014 Nov 2015~~ Key Terms Agreement Signed

Expected Complex Opening Day

~~Nov 2016~~

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4. Asian Expansion

Investigations continue into S/E Asia and Hong Kong with focus on:

• Due diligence, market metrics, and business environments;

• Identifying appropriate business and operating models

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Wrapped up:

• Clear strategy for growth

• Dynamic Board of Directors

• Strong management team

• Expertise in planning and execution

• Proven to deliver

• Flexibility in engagement models

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Disclaimer

This presentation has been prepared by Indoor Skydive Australia Group Limited ( ISA Group ) and provides general background information about the Company’s activities. That information is current at the date of this presentation. The information is a summary and does not purport to be complete. This presentation is not (and should be construed as) an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security in any jurisdiction, and neither this document nor anything in it shall form the basis of any contract or commitment. The presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor which need to be considered, with or without professional advice, when deciding whether an investment is appropriate.

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ISA Group has prepared this presentation based on information available to it, including information derived from publically available sources that have not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, correctness or reliability of the information, opinions and conclusions expressed in this presentation.

Any statements or assumptions in this presentation as to future matters may prove to be incorrect and the differences may be material. This presentation should not be relied upon as a recommendation of or forecast by the Company. To the maximum extent permitted by law, none of the Company, its directors, employees or agents , or any other person accepts any liability, including without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its content or otherwise arising in connection with it.

The financial information disclosed in this presentation has been prepared on a statutory and pro forma basis consistent with the financial information prepared in the Company’s accounts. Due care and attention should be undertaken when considering and analysing the financial performance of the Company. All references to dollars are to Australian currency unless otherwise stated. The distribution of this presentation in jurisdictions outside Australia may be restricted by law and you should observe such restrictions.

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