More Than Ltd Theme Park Business Concept 20090120

All Rights Reserved More Than Ltd. 2008

BeijingNEWEST:The World’s First Digital Theme Park

Project Summary, Management Team, and Financial Projections

Project Developer: More Than Ltd. (Los Angeles, California)Creating Entertainment Products and Services since 1989

Contact: Mr. Lukic: [email protected]

mailto:[email protected]

http://www.bnewest.com.cn/

All Rights Reserved More Than Ltd. 2008 2





Agenda

Project SummaryProject Summary

2.2. Management TeamManagement Team

3.3. Financial ProjectionsFinancial Projections


Past & Future Meet in the Present: BeijingNEWEST Global VillageA Window to the World

Joint Venture between More Than Ltd. and City of BeijingLegal Entity

Beijing, ChinaLocation

900 mu (60 hectares)Land Size

General Information

More Than Ltd./Los Angeles, Beijing Representative OfficeOwner/Manager/Designer

Digital Entertainment & Technology Exhibition Park Park’s Programming distributed daily via internet, TV, mobile Private Membership Destination Resort

Description

BeijingNEWEST Theme Park & Digital EntertainmentName



1.4 Billion RMB ($200 Million USD)Cost

1.5 – 2 years, Start in 2009Timeline

Corporate Sponsorship Construction Finance Bank Loans Private Equity

Finance Method

Construction and Finance

Sustainable design by using advanced building materials,energy-saving buildings,Integrated renewable energy systems and methods(geothermal, solar, biomass, wind)

Characteristics

8 Grand Pavilions for Attractions Restaurants & Shopping Outdoor Attractions Private Membership Club Facilities and Spa Greenhouses

Scope

100,000 sq. metersSize



Sales of Exclusivity Rights to 8 companies to exhibit and promoteCorporate Sponsors

Inside Park, Outdoor Advertising on all roads leading to the Park, through internet, TV and mobile phones in China and globally

Advertising Sales

Distribution on internet, TV and mobile phonesCultural Content Sales

All consumer payments done through our company’s Smartcard Pre-sales of Smartcard provides company income before

delivery of services Increased consumer spending due to convenience of using

Smartcard Decreased cash processing and administrative cost Efficient marketing and supply chain analytical method

Special Feature

Income Concept

Admissions, Retail, Food & Beverage, Space Lease, Attractions/Rides, Private Membership Club Fees

Park Operations

Average 150 RMB per person ($22 USD)Admission Fee

First year 3 million, with 10% annual increase (8,200 per day)Annual Visitors



Directly 1,000,indirectly 2,000 (via vendors, subcontractors and suppliers)

Number of Employees

Substantial profit potential:Unique aspect of Park’s cultural attractions and services90 Million consumer population and tourists in BeijingRapidly rising amount of consumer disposable income Limited choice of high quality theme parks in Beijing

Economic Feasibility

Established, experienced experts and specialists in the theme park industry from U.S., China, and Europe

Management Team

Team


Business Model

One operation cost, four income streams, 14 profit centers– Theme Park sales

• Admissions• Attractions• Games• Private Club Memberships

– Advertising Sales• At Theme Park, and via internet, mobile telephone & satellite TV

– Merchandising Sales• Fashion, toys, food & beverages, retail, leasing

– Corporate Sponsorship• Exclusivity and pavilion naming rights

Low cost content generated by Theme Park shows, events and competitions

Cost-free content generated by general public


Business Model

High Technology Theme Park Operations

Live Shows & Virtual Reality Attractions

Income before Sales (Smartcard sales)

RFID Visitor Tracking– Increased Sales and Security, Minimized Administrative Costs

Broadcasting from the park via– internet,– mobile phone, and– satellite TV

Monetizing the web and mobile phone content traffic through advertising


Location

City of Beijing

Excellent transportation infrastructure

20 minutes from Beijing Capital Airport

Project land size: 900 mu / 60 hectares

Total indoor space: 100,000 sq. meters


Multimedia Content Production and Distribution

The Park is a live studio where people connect with each other through the newest technologies, experiencing global culture and entertainment.

Everyone in the Park - the visitors, entertainers and animators are all actors in an ongoing, ever-evolving production.

Networked media facilities are situated throughout the major venues of the Park which connect visitors in Beijing with virtual participants from around the world.

The best of these experiences are then captured, packaged as BeijingNEWEST-branded entertainment and distributed worldwide over the internet, cable, satellite and mobile networks.


Technology Features

Media Systems– Creating unique experiences for the park visitors based on

contemporary entertainment and lifestyle activities– Enabling interactions with virtual visitors via Internet and mobile network

connections to events as they happen in the park– Capturing contemporary entertainment and lifestyle activities taking

place throughout BeijingNEWEST which are then produced and syndicated for distribution across internet, cable, satellite and mobile networks

Commerce Systems– Smart card technologies which enable park management to analyze

customer spending preferences and optimize service portfolio

Energy Systems– Integration of solar, wind, biomass, and geothermal renewable energy

sources to reduce energy costs. This micro-grid is an attraction in and of itself, and another example of BeijingNEWEST’s commitment to alternative energy resources and sustainable development


Children’s Programming & Ongoing Daily Events

Dedicated children’s area, designed for children 3-12 years old

Staff of highly qualified child development specialists and educators, who engage and guide children in interactive art and science activities, games, and exhibits

Daily music, dance and theater performances, fashion shows, various competitions and festivals

A feast of food and beverage offerings in themed food courts, restaurants, lounges, nightclubs, cabarets and private membership clubs

80 specialty retail shops and boutiques offering BeijingNEWEST brand products, as well as other exclusive merchandise.

200 character actors performing onstage and offstage throughout the park, interacting with and engaging Park visitors


Favorable Factors

U.S. Expertise in Theme Park Design, Engineering and Management

Chinese Consumers’ Rising Disposable Income

Fractured Competition in Chinese Theme Park Industry

Entertainment Sales Growth over 12% annually(Source: Global Entertainment Outlook 2004 PriceWaterhouseCoopers)

Beijing Population– 15.3 Million Beijing residents– 40 Million residents within 100 km. of Beijing– 40 Million annual domestic and foreign tourists

– Over 90 Million annual total residents & tourists


Agenda

1.1. Project SummaryProject Summary




Management Team

Rad Lukic, Founder & Creative Director

– Founder of BeijingNEWEST Theme Park & Digital Entertainment, with a foreign representative office of More Than Ltd. in Beijing.

– Founder of More Than Ltd. in 1989 in Hollywood, California. Development and management of entertainment products and services for a wide range of clients for over 17 years.

– Founder of Hermes Productions, Inc. Award-winning advertising and marketing company in New York.

– Director and producer of a long-running children’s television series, syndicated and still being broadcast across Europe.

– Masters’ Degree in Film Direction


Management Team

Norman Doerges, Theme Park Operations Director

– Mr. Doerges is known globally as the management and design force behind the Walt Disney Companies, for over thirty years. He served as the Executive Vice President of Disneyland, and Business Unit Leader for Disneyland and the Disneyland Hotel. Mr. Doerges also served as Vice President of Epcot Center, for which he held complete operating responsibility.

– Mr. Doerges also served as Vice President of Walt Disney Imagineering in Florida, in charge of master planning, design and engineering of internal organization for Walt Disney Companies. He also held the position of Operations Manager of the Magic Kingdom, Walt Disney World.

– Mr. Doerges is recognized internationally as the premier expert in the design, planning and management of theme parks, hotels and resorts.


Management Team

Mario Kamberg, Chief Designer

– Mr. Kamberg has been at the leading edge of theme park and attractions design for over twenty five years. Creating award-winning projects for numerous international entertainment companies, including Universal Studios, Paramount Parks, Discovery Channel, Busch Gardens, Hanna Barbera, Viacom, Warner Brothers, and many Las Vegas casinos, he has set new industry standards in visual imagery.

– Employing the best technologies in animation, simulation experiences, virtual reality and visual effects, Mr. Kamberg has been at the forefront of production design, themed architecture and environments for some of the world’s most successful theme parks and attractions.


Management Team

Cui Kai, Chief Architect – Mr. Cui is recognized globally as one of the premier Chinese

contemporary architects. He is the Vice President and Chief Architect for the China Architecture Design and Research Group. Mr. Cui is a member of the Board of Directors of the International Union of Architects.

– Previously, he was the Chief Architect of the China Ministry of Construction’s Architecture Design Studio. Mr. Cui has won international awards for architectural design, including his work on the China Ministry of Finance headquarters in Beijing. He has designed numerous other office and mixed-use buildings in China and throughout the Asia-Pacific region. Mr. Cui is also a highly recognized lecturer and renowned professor of architecture at several prestigious universities throughout China.


Management Team

Deborah Kagan, Programming Director – Ms. Kagan has extensive experience in corporate administration and

fund raising, and served as More Than Ltd.’s Operations Director. In addition to managing daily operations, she supervised government and public relations, as well as creative and executive recruitment efforts.

– In California, she founded and served as Executive Director of General Education Media Support for Kids (GEMS), a private nonprofit corporation that produced and distributed thematic inter-disciplinary children’s educational television series, and provided media arts and performing arts education programs to Los Angeles youth in underprivileged, urban areas.

– Ms. Kagan holds a Masters’ degree in Education and a Bachelors’ degree in World Arts and Cultures/Cultural Anthropology from the University of California, Los Angeles. She spent five years in Paris as the assistant and protégée of pioneer photojournalist Henri Cartier-Bresson, founder of the legendary Magnum Photos agency.


Management Team

Robert Kelly, Music Director – Mr. Kelly is a leader in the development and application of multimedia

platforms for the entertainment industry.– He is the founder and CEO of Organic Entertainment, a New York-based

multimedia entertainment and production company.– Mr. Kelly is the exclusive agent for many top level entertainment

executives and recording artists.

– He is also directing the Nina Simone Cultural Village, a themed entertainment and high-tech cultural learning center under construction in Ghana.


Management Team

Dr. Roland Spahr – Financial Advisor– Dr. Roland Spahr has been working for international consulting

companies in Germany and since August 2005 in China, Beijing– He has been advising in financial services and was a project manager

for developing loan management solutions in international and Chinese banks

– Mr. Spahr developed tools to improve financial services management for investment banking, project finance, company start-ups, and corporate loan business

– He holds a PhD in business research in the field of managing successfully innovation and projects from a business perspective

– Mr. Spahr holds a masters degree of business in finance– He worked in German banks and coached German bankers in banking

business including accounting, finance, controlling, and banking products in the fields of investment, corporate and retail credit, and international trades.


Agenda

1.1. Project SummaryProject Summary




Utilization of Investment

Investment Budget: US$ 196.2 Mio.

3.1%

39.5%

8.7%9.1%

17.8%

17.9%

3.9%

Architectural & Design Fees

Base Construction & MEP 100sqm (Mechanical Electronicsand Plumbing)

Infrastructure Improvements(energy & water sewer)

Fixtures, Furnishings, ITequipment

Special effects technologies

Park Operations prior toopening

Contingency


15 Income Producing Channels

Cumulative Revenues per Income Channel for 5 years

0

50

100

150

200

250

300

350

Admiss

ion fe

es

Food

and

beve

rage

Mer

chan

dise

Amus

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ts & a

ttrac

tions

Mult

imed

ia Arc

ade

Feat

ured

Ent

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inmen

t & S

hows

Conce

rt Per

form

ance

s

Found

ers C

lub A

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Resor

t Ope

ratio

ns

Corpo

rate

conv

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Leas

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Med

ia Sale

s

Pavilli

on n

aming

righ

ts

Corpo

rate

Spo

nsor

ships

Corpo

rate

Adv

ertis

ing

Mio US$


Investment and Return

5 Year Plan - Cumulative Investment and Cash-flow

0

100

200

300

400

500

600

700

2008 2009 2010 2011 2012 2013 2014 2015 2016

Year

US$

Investment

Net Profit

Cash-flow

Minimum Cash-flow(Based on Monte-Carlo Simulation)


Projection of Financials forPlanning, Construction and Operation

Planning and ConstructionUnit PlanningPlanning Construction

Financials and Projections for 2007/08 Year 2004 2005 2006 2007 2008 2009

EBITDA Mio US$ -2.3 -2.8 -3.6 -0.9 -7.0 -10.2

Cash-flow Mio US$ -2.3 -2.8 -3.6 -0.9 -68.3 -127.9

Already invested Mio US$ 2.3 2.8 3.6 0.9

Investment needed for each year Mio US$ 0.0 0.0 0.0 0.0 68.3 127.9

OperationUnit Operation

Financial Projections Year 2010 2011 2012 2013 2014

EBITDA Mio US$ 109.2 149.2 168.2 182.6 198.4

EBITDA/Total Revenues % 39.9% 43.8% 44.4% 44.3% 44.2%

Net Profit Mio US$ 57.5 92.4 108.4 120.0 132.7

Cash-flow Mio US$ 76.8 111.6 127.6 139.2 151.9


Results of Monte Carlo Simulation

In at least 95% of all 50,000 simulated cases the net profit of all five years together is big enough to pay back investors in total

Risk of default is very small

Monte Carlo Simulation (MCS) on Net Profits

Summary of 50,000 MCS Y2010 Y2011 Y2012 Y2013 Y2014 FairValue*

Min -5 11 14 18 19 116

Max 192 257 274 298 329 2,732

Number of cases negative profit 1 0 0 0 0 0

Probability of Default 0.002% n.e. n.e. n.e. n.e. n.a.

Benchmark from PL 61 90 102 111 121 980

Average from MCS 61 90 102 112 121 983

75% of all cases higher then 43 68 78 85 92 739



FairValue*: NPV on average net profit at 10% discount rate Mio US$


Conclusion

BeijingNEWEST represents

an unusual synthesis of market readiness,

creative concept,

team expertise, and

investment opportunity.

Documents

More Than Ltd Theme Park Business Concept 20090120