Merlin Entertainments

ABOUT MERLIN ENTERTAINMENTS

Merlin Entertainments is Europe’s leading and the world’s second-largest visitor attraction operator. Merlin operates 129 attractions in 24 countries across four continents. The aim for Merlin Entertainments is to create a high growth, high return, family entertainment company based on strong brands and a global portfolio that is naturally balanced against the impact of external factors. Merlin Entertainments delivers memorable experiences to millions of visitors worldwide.

Merlin Entertainments operates through three operating groups: LEGOLAND® Parks, Resort Theme Parks and Midway Attractions, which include a number of international brands such as SEA LIFE, Madame Tussauds, the Dungeons, LEGOLAND Discovery Centres and The Eye.

Midway Attractions are high quality, predominantly indoor attractions located in city centres, shopping malls or resorts providing visits of shorter duration. Resort Theme Parks are nationally recognised branded resorts generally aimed at families, teenagers and young adults.

The eight LEGOLAND resorts across Europe, USA and Asia offer a unique LEGO® themed experience for families with children. As multi-day destinations, they include innovatively themed accommodation and attractions based on interactivity, imagination and family fun. Also, in the 23 LEGOLAND® Discovery Centres across Europe, USA and Asia, families with young children are offered an indoor, interactive and immersive LEGO branded experience. In 2019, KIRKBI, together with a consortium of long-term investors comprising funds advised by Blackstone Core Equity Advisors L.L.C. and Canada Pension Plan Investment Board, completed the take-private of Merlin Entertainments. As the long-term owner of the LEGO and LEGOLAND brand and as a strategic shareholder in Merlin Entertainments since 2005, KIRKBI has great pride and passion for the company. Following the closing of the transaction in November 2019, KIRKBI is now a 47.5% owner of the company.

HIGHLIGHTS FOR 2020

COVID-19 has surfaced in nearly all regions around the world, resulting in governments in affected areas taking unprecedented steps to impose a range of restrictions on both individuals and organisations. The focus of Merlin Entertainments for 2020 has been on the health, safety and well-being of its employees and visitors around the globe.

The vast majority of the 129 attractions were closed for a large part of the year or have been significantly limited in number of visitors due to the pandemic and social distancing. The number of visitors was one-third compared to last year, and revenue declined accordingly.

Since the start of the pandemic, Merlin Entertainments has initiated a number of operating cost and cash control measures, including extending planned capital expenditure programmes.

Operating profit excluding impairments was negative with GBP 371 million compared with a profit of GBP 237 million in 2019. KIRKBI’s share of profit for the year is negative with DKK 2,031 million compared with a profit of DKK 135 million in 2019.

The strategy to expand the LEGOLAND Parks’ footprint continued throughout 2020. Merlin continued the construction of LEGOLAND New York where the opening has been postponed to 2021 due to the pandemic. The construction of LEGOLAND Korea continued with planned opening in 2022. Merlin announced a formal co-operation agreement with the Shanghai Jinshan District Government, CMC Inc. and KIRKBI to develop a LEGOLAND Resort in the Jinshan District of Shanghai, China. The LEGOLAND Shanghai Resort is anticipated to open in 2024.

Furthermore, Merlin Entertainments has entered into a partnership agreement with Global Zhongjun Cultural Tourism Development Co. to build and operate a LEGOLAND Resort in Sichuan Province in Western China. The resort is scheduled to open by 2023.

BOARD OF DIRECTORS

• Roland Hernandez, Chairman • Nick Varney, CEO • Alistair Windybank, CFO • Joseph Patrick Baratta II • Lori Anne Hall-Kimm • Jørgen Vig Knudstorp • Sidsel Marie Kristensen • Søren Thorup Sørensen • Peter Farrell Wallace

5 YEARS’ PERFORMANCE

(m GBP)

1,500

1,000

500

0

(500) 2016 2017 2018 2019 2020

FINANCIAL HIGHLIGHTS

(m GBP)

2020 2019

Revenue 629 1,740 Operating profit/(loss), excluding impairments (371) 237 Net profit/(loss), excluding impairments (499) 124 Equity 1,959 2,562 Cash flow from operating activities (129) 463 Visitors (millions) 22 67 Ownership of Merlin Entertainments 47.5% 50.0%

KIRKBI’s share of profit/(loss) excluding impairments for the year (m DKK) (2,031) 135