world first digital theme park beijing by Rad Lukic

BeijingNEWEST: The Worldâ&#x20AC;&#x2122;s First Digital Theme Park Project Developer: More Than Ltd. (Los Angeles, California) Creating Entertainment Products and Services since 1989 Contact: Mr. Lukic: rlukic@bnewest.com.cn

www.bnewest.com.cn

Project Summary, Management Team, and Financial Projections

Agenda 1. Project Summary 2. Management Team 3. Financial Projections

Past & Future Meet in the Present: BeijingNEWEST Global Village A Window to the World General Information Name

BeijingNEWEST Theme Park & Digital Entertainment

Description

Digital Entertainment & Technology Exhibition Park Parkâ&#x20AC;&#x2122;s Programming distributed daily via internet, TV, mobile Private Membership Destination Resort

Owner/Manager/ Designer

More Than Ltd./Los Angeles, Beijing Representative Office

Legal Entity

Joint Venture between More Than Ltd. and City of Beijing

Location

Beijing, China

Land Size

900 mu (60 hectares)

Past & Future Meet in the Present: BeijingNEWEST Global Village A Window to the World Construction and Finance Size

100,000 sq. meters

Scope

Characteristics

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

Cost

1.4 Billion RMB ($200 Million USD)

Timeline

1.5 â&#x20AC;&#x201C; 2 years, Start in 2009

Finance Method

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

Corporate Sponsorship Construction Finance Bank Loans Private Equity

Past & Future Meet in the Present: BeijingNEWEST Global Village A Window to the World Income Concept Annual Visitors

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

Admission Fee

Average 150 RMB per person ($22 USD)

Park Operations

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

Corporate Sponsors

Sales of Exclusivity Rights to 8 companies to exhibit and promote

Advertising Sales

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

Cultural Content Sales

Distribution on internet, TV and mobile phones

Special Feature

All consumer payments done through our companyâ&#x20AC;&#x2122;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 All Rights Reserved More Than Ltd. 2008

Past & Future Meet in the Present: BeijingNEWEST Global Village A Window to the World Team Management Team

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

Number of Employees

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

Economic Feasibility Substantial profit potential: Unique aspect of Parkâ&#x20AC;&#x2122;s cultural attractions and services 90 Million consumer population and tourists in Beijing Rapidly rising amount of consumer disposable income Limited choice of high quality theme parks in Beijing

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

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

Project land size: 900 mu / 60 hectares

Excellent transportation infrastructure

Total indoor space: 100,000 sq. meters

20 minutes from Beijing Capital Airport

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 All Rights Reserved More Than Ltd. 2008

Childrenâ&#x20AC;&#x2122;s Programming & Ongoing Daily Events Dedicated childrenâ&#x20AC;&#x2122;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. Project Summary 2. Management Team 3. Financial Projections

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 CartierBresson, founder of the legendary Magnum Photos agency. All Rights Reserved More Than Ltd. 2008

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. Project Summary 2. Management Team 3. Financial Projections

Utilization of Investment Investment Budget: US$ 196.2 Mio.

Architectural & Design Fees

Base Construction & MEP 100 sqm (Mechanical Electronics and Plumbing)

3.9% 3.1% 17.9%

Infrastructure Improvements (energy & water sewer)

39.5%

Fixtures, Furnishings, IT equipment Special effects technologies

17.8% Park Operations prior to opening Contingency 9.1%

Ad Fo mis sio od n an fe d Am be es us v em Me era ge rc en Fe h ts an at ur & di ed M a se t u t r l En a t te ime ctio r ta d n in i a A s C m en rca Fo on t & de un cer t de Sh rs Per fo ows C rm lu b An anc Re nu es so al C or rt Fe po O pe es ra ra t Le e c t on ion as s ve e nt of io re ns ta il Pa sp M vi ed ace llio C ia n or Sa po na m le ra in s te g C S po righ or po ts ns ra o rs te Ad h i p ve s rt i si ng

15 Income Producing Channels Cumulative Revenues per Income Channel for 5 years

Mio US$ 350

300

250

200

150

100

Investment and Return US$

5 Year Plan - Cumulative Investment and Cash-flow

700 600

Investment Net Profit

500

Cash-flow

400

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

300 200 100 0 2008

Year 2009

2010

2011

2012

2013

2014

2015

2016 29

Conclusion BeijingNEWEST represents an unusual synthesis of market readiness, creative concept, team expertise and investment opportunity. Limited amount of project equity available for qualified investors