easyHotel plc

Investor presentation February 2018

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• This presentation (this "presentation") is for general information only and is the property of easyHotel plc ("easyHotel"). Making this presentation available in no circumstances whatsoever implies the existence of a commitment or contract by or with easyHotel, or any of its affiliated entities, or any of its or their respective subsidiaries, directors, officers, representatives, employees, advisers or agents ("Affiliates") for any purpose.

• This presentation as well as any other related documents or information do not purport to be all inclusive or to contain all the information that you may need. There is no obligation of any kind on easyHotel or its Affiliates to update this presentation. No representation or warranty, express or implied, is or will be made in relation to, and no responsibility or liability is or will be accepted by easyHotel or its Affiliates as to, or in relation to, the accuracy, reliability, or completeness of any information contained in this presentation and easyHotel (for itself and on behalf of its Affiliates) hereby expressly disclaims any and all responsibility or liability (other than in respect of a fraudulent misrepresentation) for the accuracy,reliability and completeness of such information.

• All projections, estimations, forecasts, budgets and the like in this presentation are illustrative exercises involving significant elements of judgement and analysis and using assumptions, judgements and analyses which may or may not prove to be correct. The actual outcome may be materially affected by changes in e.g. economic and/or other circumstances. Therefore, in particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as tothe achievability or reasonableness or any projection of the future, budgets, forecasts, management targets or estimates, prospects or returns. You should not do anything (including entry into any transaction of any kind) or forebear to do anything on the basis of this presentation. Before entering into any arrangement, commitment or transaction you should take steps to ensure that you understand the arrangement, commitment or transaction and have made an independent assessment of the appropriateness of the arrangement, commitment or transaction in light of your own objectives and circumstances, including the possible risks and benefits of entering into such an arrangement, commitment or transaction.

• No information, representations or opinions set out or expressed in this presentation will form the basis of any contract.

• This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

Disclaimer

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Market Outperformance

• Market outperformance continues

in owned hotels: RevPAR +10.9%3

• New openings above

85% occupancy

Delivering Growth (FY2017 results)

• Revenue +39.7%

• Adjusted EBITDA +48.3%

• PBT before one-offs +43.0%

Accelerated Development

• 7 hotels1/ 717 new rooms opened

• 941 Owned2 & Leased rooms

under development

• 1,798 Franchised rooms

committed

Highlights

1 Includes Liverpool (opened in November 2017) and Newcastle (opened in December 2017)2 Includes projects announced as at date of presentation3 Performance for YTD December 2017

Deal Highlights

• Pipeline of 8 hotels and

1,122 rooms under

negotiation

• Up to £83m funding

targeted (equity and debt)

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Strategy at the Heart of our Business Model

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A Market Opportunity

• Owned & leased potential for c.12,000 rooms

in UK and Europe*

• Franchised potential for c.15,000 rooms in UK

& Europe*

• Over 2,500 owned & leased rooms under

negotiation with over 1,000 rooms approved

by the Board

• Further c.1,300 franchised rooms under

negotiation

Customer Understanding

• Budget hotels are chosen because of location

and price

• Consumers choose them because they’re close

to where they need to be

• Customer needs are relatively simple: a great

bed, well trained, friendly staff and well-designed

rooms

• A brand that is easy and simple to do business

with

The easyHotel strategy

* Directors’ estimate

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Leased

£2-4k EBITDA* per room

Investment up to £5k per room

High returns cash on cash

Franchised

£600-1,000+ fee* per room

No capital investment

High margin

Increased brand presence

Owned

£8-10k EBITDA* per room

Investment £60-70k per room

12-13% ROCE*

The easyHotel strategy (cont.)

Delivering Shareholder Returns

Blended ROCE of 15%

Maximising Revenues

• We don’t have restaurants in our hotels – we

use every available space to sell bedrooms

• We offer a consistent, good quality room at a

low price. As a result, our occupancies are high

• Revenues are maximised via the revenue

management and eCommerce strategy

• Successful implementation of hotel

management system

* Target at maturity

*

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Occupancy

2017 201686.7% 82.1%

ADR

2017 2016

£41.9 £40.0

Segmentation analysis

FY2017 FY2016 Growth

£’000 £’000 %

Revenue 6,604 4,728 +39.7

Adjusted EBITDA 3,240 2,571 +26.0

Profit before tax & one-offs 2,633 2,015 +30.7

FY2017 FY2016 Growth

£’000 £’000 %

Revenue 1,812 1,296 +39.8

Adjusted EBITDA 1,042 636 +63.8

Profit before tax & one-offs 1,042 666 +56.5

Occupancy

2017 2016

77.7% 74.5%

ADR

2017 2016£49.4 £42.6

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Performance analysis

FY2017 FY2016 Growth

£’000 £’000 %

Adjusted EBITDA (1,982) (1,656) +19.7

% of revenue 23.6% 27.5% -3.9pts

Profit before tax & one-offs (2,026) (1,528) +32.6

FY2017 FY2016 Growth

£’000 £’000 %

Revenue 8,416 6,024 +39.7

Adjusted EBITDA 2,300 1,551 +48.3

Profit before tax & one-offs 1,649 1,153 +43.0

Co

rpo

rate

Tota

l

Adjusted EBITDA+48.3%

Corporate costs % of revenue

reduced 3.9pts

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Committed pipeline financed

Current commitments

• 761 Owned rooms – Barcelona, Sheffield, Leeds, Ipswich, Cardiff & Milton Keynes• 180 Leased rooms – Oxford• Refurbishment of Croydon and Glasgow

Equity raise

• October 2016, equity placing of £38.0m (before expenses)

Bank Debt raised

• Five-year facility of £12.0m bearing interest at Libor +2.50% refinancing previous £7.2m bank facility

• Euro-denominated mortgage facility of €8.3m bearing interest at EURIBOR +2.25% for development of new Barcelona hotel

Owned development

£39.2m

Leased development

£1.1m

Refurbishment

£1.5m

Spain financing

£6.9m

Net pipeline Commitments

£34.9m

Cash at 30 Sep 2017

£33.3m

£1.6m shortfall financed from

future operating cash surpluses

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Current trading and outlook

• Owned hotel portfolio significantly outperformed the competitive set with RevPAR change

+10.9%1 compared to the competitive set

• Recently opened hotels in Newcastle and Liverpool; both hotels trading in line with strong

performance of hotels opened during last financial year

• Hotels in Leeds, Sheffield, Ipswich and Barcelona comprising 517 rooms to open later in 2018

• Cardiff, Milton Keynes and Oxford comprising 424 rooms opening in 2019

• Old Street: planning permission being sought

• The planned and committed hotel openings during the year ending 30 September 2018 and

2019 are expected to make a significant contribution to system sales, revenue and adjusted

EBITDA going forward

• Trading for the year ending 30 September 2018 is in line with Board expectations

1 Performance for YTD December 2017

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North-west historic city

• Located in city centre• 109 rooms • New build on turnkey

basis • At legals• Potential opening 2019

South-west historic city Northern coastal town

Midlands historic city South-west major city

• In the heart of the city• 114 rooms• New build • At legals• Potential opening 2019

• On seafront• 120 rooms • New build on turnkey

basis • At legals• Potential opening 2019

• In the heart of the city• 120 rooms • New build on turnkey

basis• At legals• Potential opening 2019

• Close to main train station

• 129 rooms • New build • Deal agreed in principle• Potential opening 2019

* Current estimate - There can be no certainty any of the future projects will be acquired on the terms set out above

6 Potential UK Projects Investment Value £39m: 692* rooms

• 8 further projects currently being evaluated for 1,285 rooms

East of England

• Close to city centre• Historic city• 100 rooms • New build lease • At legals• Potential opening 2019

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FranceSpain

• Close to major airport• 200 rooms • New build lease• At legals• Potential opening 2020

• Close to main train station

• 230 rooms • New build freehold• Deal agreed

• Potential opening 2020

* Current estimate - There can be no certainty any of the future projects will be acquired on the terms set out above

2 Potential European Projects Investment Value £21m: 430* rooms

• Actively reviewing development projects & acquisitions in key Western European

countries

• Growing hotel development team for European expansion

• Objective to balance European and UK development in medium term

• Board continues to review single hotel developments and chain acquisitions in the

UK and Europe

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Opened Committed and funded Targeted

Dec 2017 2018 2019 Future pipeline

Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms

Owned 6 598 4 517 2 244 6 822

Leased 1 104 - - 1 180 2 300

Franchised 19 1,641 6 498 2 600 7* 700*

Total 26 2,343 10 1,015 5 1,024 15 1,822

Cumulative Total

26 2,343 36 3,358 41 4,382 56 6,204

Hotel openings

* Committed franchised projects only, a further c.1,300 franchise rooms are currently under negotiation

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Financing the pipeline

Intent to raise up to £83m of new financing to fund medium-term target hotel

development pipeline

Financing would comprise the following:

2018 - Additional equity:

• Conditional placing to raise £50m (before expenses)

2018 - Additional debt:

• Additional UK corporate debt of £10m to be raised

Future - Potential additional debt:

• Accordion facility of £23m

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Potential debt summary

Amount Secured Drawdown

UK Corporate £12m 2016 2016

Barcelona mortgage £7m 2017 2017/2018

UK Corporate £10m 2018* 2019

Accordion facility £23m 2018** 2019/2020

Total potential debt £52m

* Term sheet agreed, to be finalised after placing

** Accordion facility would be agreed in principle in 2018 with a firm commitment to be confirmed at a later date

Committed

New

New

Intent is to raise a mortgage on the potential Spanish project at a later date

(50-60% leverage, similar to existing mortgage on Barcelona hotel development)

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The placing

• Conditional placing to raise £50m (before expenses), subject to shareholder approval

• Placing shares to rank pari passu with existing ordinary shares

• ICAMAP, 29.9% shareholder, intends to subscribe £29m

o ICAMAP’s resultant shareholding of 38.7% requires approval by Takeover Panel

and independent shareholders

o ICAMAP will enter into a relationship agreement with easyHotel

o ICAMAP will have the right to appoint one non-executive director to the Board;

Harm Meijer proposed director

• Directors participation in placing of £0.1m

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Summary

easyHotel continues to outperform the market

Significant market opportunity exists for further growth

Target pipeline of 1,122 rooms

Additional capital of up to £83m targeted

Board expects investment of new capital to be earnings enhancing in the medium term

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3

4

5

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Appendix

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Appendix A: Profit and Loss

FY 2017 FY 2016

£’000 £’000

System sales 29,672 21,315

Revenue 8,416 6,024

Cost of sales (3,258) (2,151)

Gross profit 5,158 3,874

Administrative expenses (4,478) (2,833)

Analysed as:

Adjusted EBITDA 2,300 1,551

Non-recurring costs (398) 187

Hotel pre-opening and development costs (218) (89)

Depreciation and amortisation (831) (447)

Share based payments (172) (161)

681 1,041

Profit from operations 681 1,041

Net finance income/(costs) 180 49

Profit before taxation 860 1,090

Taxation (217) (213)

Profit for the year 643 877

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Appendix B: Balance Sheet

FY 2017 FY 2016

£’000 £’000

Non-Current Assets

Intangible assets 1,014 149

Property, plant and equipment 51,143 30,463

Long-term deposits 636 -

Total non-current assets 52,793 30,612

Current Assets

Trade and other receivables 2,724 1,243

Cash and cash equivalents 33,255 13,659

Total current assets 35,979 14,902

Total assets 88,772 45,514

Non-Current Liabilities

Trade and other payables 378 86

Bank borrowings 11,666 -

Deferred tax liability 351 194

Total non-current liabilities 12,395 280

Current Liabilities

Trade and other payables 5,805 4,706

Bank borrowings 360 7,200

Corporation taxation 31 119

Total current liabilities 6,196 12,025

Total liabilities 18,591 12,305

Total net assets 70,181 33,209

Equity

Share capital 1,005 625

Share premium 64,776 28,591

Merger reserve 2,750 2,750

EBT reserve (1,067) (1,067)

Currency translation reserve (80) -

Retained earnings 2,797 2,310

Total equity 70,181 33,209

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Appendix C: Cash Flow Statement

FY 2017 FY 2016

£’000 £’000

Profit before taxation for the year 860 1,090

Adjustments for:

Loss / (profit) on disposal of property, plant and equipment 240 (283)

Depreciation of property, plant and equipment 831 447

Share based payments 172 162

Finance income (207) (249)

Finance expense 91 200

Operating cash flows before movement in working capital 1,987 1,367

Increase/(decrease) in net trade and other payables 521 (454)

Cash generated from operations 2,508 913

Corporate tax paid (149) (22)

Net cash flows from operating activities 2,359 891

Finance income 195 156

Finance expense (338) (200)

Net cash generated from operations 2,216 847

Purchase of property, plant and equipment (22,709) (9,228)

Proceeds from property, plant and equipment - 590

VAT on investing activities (416) (1,008)

Net cash used in investing activities (23,125) (9,646)

Inflow from equity raise 36,564 -

Repayment of loans (7,560) -

Net proceeds from new loans 11,890 -

Dividend paid (328) (270)

Net cash utilised by financing activities 40,566 (270)

Net increase/(decrease) in cash and cash equivalents 19,657 (9,069)

Cash and cash equivalents at the beginning of the period 13,659 22,636

Exchange impact on cash and cash equivalents (61) 92

Cash and cash equivalents at the end of the period 33,255 13,659

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Appendix D: Hotel listing

Hotel location Rooms Country Ownership

Dubai Jebel Ali 216 UAE Franchisee

Frankfurt 132 Germany Franchisee

Amsterdam Arena 131 The Netherlands Franchisee

Berlin Hackescher Markt 125 Germany Franchisee

Den Haag 109 The Netherlands Franchisee

Rotterdam City Centre 107 The Netherlands Franchisee

Brussels 107 Belgium Franchisee

London Victoria 105 United Kingdom Franchisee

Amsterdam Zaandam 96 The Netherlands Franchisee

Amsterdam City 80 The Netherlands Franchisee

London Heathrow 82 United Kingdom Franchisee

Sofia 57 Bulgaria Franchisee

Budapest Oktogon 59 Hungary Franchisee

Luton 68 United Kingdom Franchisee

London Paddington 47 United Kingdom Franchisee

London South Kensington 34 United Kingdom Franchisee

Zurich 33 Switzerland Franchisee

Edinburgh 29 United Kingdom Franchisee

Basel 24 Switzerland Franchisee

Old Street 92 United Kingdom Owned

Glasgow 124 United Kingdom Owned

Manchester 115 United Kingdom Owned

Croydon 103 United Kingdom Owned

Birmingham 86 United Kingdom Owned

Liverpool 78 United Kingdom Owned

Newcastle 104 United Kingdom Owned

26 Hotels 2,343 8 Countries and 17 cities 19 Franchised, 7 Owned

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easyHotel Amsterdam Arena

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easyHotel Amsterdam Zaandam

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easyHotel Birmingham

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easyHotel Brussels

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easyHotel Liverpool

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easyHotel Manchester