Sale Leaseback of 38 Bowling Entertainment Centers with Bowlero Corp. slide image

Sale Leaseback of 38 Bowling Entertainment Centers with Bowlero Corp.

BOWLERO'S CAPEX CONVERSION PLANS ARE KEY TO ITS DIFFERENTIATED STRATEGY Bowlero has a $70MM Capex Plan for the Portfolio Acquired by VICI ● ● ● ● ● Bowlero has a demonstrated track record of successfully driving growth at its properties by utilizing free cash flow to upgrade acquired assets to upscale experiential Bowlero-branded locations Property conversions enhance the customer offering with more upscale entertainment concepts, including premium lounge seating, high-end dining areas, arcade and billiards areas, and tailored customer service for individuals and group events Bowlero's capex conversion strategy follow a multi-phased approach: Phase I: Update or add arcades, cosmetic improvements (i.e., floors, lights, paint), and audio-visual system upgrades - Bowlero's Capex Approach Phase II: Rebranding, including signage changes, and making a transition to a more upscale product offering, including an updated kitchen and bar, front desk, and layout renovations BOWLERO NORWALK $4.0M M Net Cash Invested 47% ROI Illustrative Bowlero Capex Conversion Case Studies: Certain VICI Acquired Properties BOWLERO NORTH. BRUNSWICK 2.1 Payback Years Former AMF center acquired by Bowlero in 2013 acquisition of AMF Bowling Pre-conversion revenue of $3.1mm and EBITDA of $1.0mm Year 1 performance after conversion of revenue of $5.7mm and EBITDA of $2.9mm Before . SOBOBOO@stela CHANC0000 $4.7 MM Net Cash Invested 56% ROI After 1.8 Payback Years 1420 Former Brunswick center acquired by Bowlero in 2014 acquisition of Brunswick Bowling Centers Pre-conversion revenue of $4.0mm and EBITDA of $1.0mm Year 1 performance after conversion of revenue of $7.0mm and EBITDA of $3.2mm EBITDA margin expansion of +948 basis points EBITDA margin expansion of +2,099 basis points Source: Bowlero public filings and information provided by Bowlero management. Case studies based on historical information provided by Bowlero and prepared on a basis consistent with their financial statements.. Historical results may not be a reliable indicator of future results. VICI 9
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