1. WTA ANNUAL CONFERENCE 2013 Banking…our place in your industry? 1

2. Contents 2  Market trends in the UK  Market trends in Wales  Leisure Survey  Investment and Funding options  NatWest  Q&A

3. 3 UK – Leisure Sector in line with UK economy, although more volatile Source: Datastream RBS Economics

4. 4 UK – Strip out accommodation…..story changes Source: Datastream RBS Economics

5. UK – Regions broadly in line in tracking UK economy 5 Source: National Statistics Regional gross value added (average y/y growth 1998-2011) -4% -2% 0% 2% 4% 6% 8% 10% 19981999200020012002200320042005200620072008200920102011 North EastNorth WestYorkshire and The HumberEast Midlands West MidlandsEast of EnglandLondonSouth East South WestWalesScotlandNorthern Ireland UK London

6. UK – Wage costs appear to have eased slightly relative to UK plc Source: Datastream RBS Economics 6

7. UK – Outlook getting better……slowly Source: Consensus Economics 7

8. Wales – Sector importance for the Welsh economy  GVA of £2,322m in 2010. Source: ONS Headline workplace based GVA at current basic prices, Wales (‘Accommodation & Food Services’ and ‘Arts, entertainment and recreation’) 8

9. Wales – Volume and Value of the sector Source: Nomis / ONS International Passenger Survey, Wales 9  9.89m visits in 2010 spending £1.8bn (Domestic and International).  Domestic tourism represent 90% of visits & 80% of spending.

10. 10 Wales – Sector importance for employment  124,000 people employed.  5.8% of the population. Source: Nomis / ONS June 2013, Wales (‘Accommodation & food service activities’ and ‘Arts, entertainment & recreation’).

11. NatWest Leisure Survey – Cautious Optimism! How optimistic are you about your business over the next 12 months? How will your business perform over the next 12 months? Source: RBS Insight Survey of Leisure Customers April 2013 11

12. NatWest Leisure Survey – Attitudes to investment Have you invested enough to stay competitive? Do you think it is too risky to invest in the current climate? Source: RBS Insight Survey of Leisure Customers April 2013 12

13. NatWest Leisure Survey – What businesses want to invest in Source: RBS Insight Survey of Leisure Customers April 2013 13 What Type of investment would make the biggest positive impact on your business?

14. NatWest Leisure Survey – Summary of key messages Source: RBS Insight Survey of Leisure Customers April 2013 14 Cautious Optimism Access to Funding Lacking Investment Please Don’t Rain Lick of Paint Required August and December Critical Security may be required. Product fees may apply. Over 18s only. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

15. Investment – Funding options Equity  Owner Equity  Private Investors (EIS/SEIS Schemes)  Private Equity  Business Growth Fund  Crowd Sourcing? Debt  Bank Debt  Private Loans  Brewery Loans / Key Money Mezzanine  Hybrid 15 Security may be required. Product fees may apply. Over 18s only. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

16. Investment – Optimal Capital Structures  Optimal balance between debt and equity  Equity more expensive  Debt cheaper Ultimate combination will drive cost of capital for investment 16 Security may be required. Product fees may apply. Over 18s only. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

17. Investment – What are banks looking for? Viability  Proof of concept  Strategic rationale  Location/s  Management capability (both operational and strategic)  Budgets / margin / cash management  Single site versus multi site  Freehold versus leasehold 17

18. NatWest - What are we doing?  Sector based approach  Training and accreditation  Working with you  4 Specialist RMs in Wales 18

19. NatWest – Ahead for Business 19

20. NatWest - Leisure Fund Security may be required. Product fees may apply. Over 18s only. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT. 20 What is the Leisure Fund? Fee-free borrowing to help you business grow.  £300m Fund to support the UK Leisure Sector.  Optional capital repayment holiday. The Leisure Fund & Funding for Lending Scheme is a limited Fund and will be offered on a first come first served basis. It is for loans of up to 5 years. Usual lending conditions apply. Structured finance and real estate finance are excluded. Only available to businesses with a turnover of above £2m and a maximum of £25m. The Capital Repayment Holiday is available for loans over £1m. For borrowing below £1m, it is subject to application. Only one six-month holiday can be taken in a 12-month period. Not available for development funding.

21. NatWest - Leisure Fund Security may be required. Product fees may apply. Over 18s only. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT. 21 How much have we lent in Leisure since launch?  £162.719m  265 Customers Source: RBS / NatWest Leisure Fund Sub-SectorGrand Total Hotels£90.594m Other Leisure£17.917m Pubs£17.052m Restaurants£24.025m Sporting£8.771m Travel£0.910m Gaming£3.450m Grand Total£162.719m

22. Questions? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 22