FLYCOR - Multi-Activity Adrenaline Laced Leisure Experiences

1. FLYCORpowered by • MULTI-ACTIVITY – ADRENALINE LACED - LEISURE EXPERIENCES • INDOOR SKYDIVING BASE JUMPING CLIMBING ABSEILING ZIP WIRE • AERODIUM TECHNOLOGIES • BASED IN RIGA, LATVIA • FOUNDED IN 1979 • FLYCOR • Flying Corporation (Europe) Ltd

2. FLYCOR Flying Corporation (Europe) LtdPowered by Aerodium Aerodium We can make people fly and create the most innovative vertical wind tunnels. Since 1979. We are the world leaders in the production of custom made vertical wind tunnels and in the provision of flight shows. On a daily basis we design, manufacture, install and operate vertical wind tunnels for different functions all over the world – this includes entertainment, indoor skydiving, show business & brand promotional events, movies and military training We operate inspired by a mission – to provide the best flying experience, and to show that the impossible can be achieved! AERODIUM is the original inventor of vertical wind tunnels for public entertainment. FLYCOR is a hub for multi activity adrenaline laced leisure experiences FLYCOR have secured their first location at the new snowdome complex at North Star Swindon and are in talks for a second location close to London. Good locations are extremely difficult to find. North Star Swindon will also feature the relatively new phenomena of indoor skydiving together with some ancillary leisure experience activities drawn from our portfolio which includes, simulated BASE jumping, abseiling , climbing and Zip wire. FLYCOR have partnered with a market leader in Europe, Aerodium who will supply the indoor skydiving technology together with technical, operational and marketing support. Aerodium have recently developed new market leading technology that arguably makes the scheme attractive to Developers.

3. THE PROPOSAL: PROJECTED INVESTOR RETURNS • Net of the significant fee’s, costs and expenses paid to date by the Directors and net of the contribution of £100,000 per Director to the cost of the Equipment and technology to be supplied by Aerodium, FC is seeking to raise an Investment sum of £3,700,000  for the first FLYCOR Hub. • if possible split as to: • £1,850,000 by the issue of shares representing 60% of the equity; • £1,850,000 by way of Shareholder loans at a yield of 6% per annum, payable monthly until repayment. • The current cashflow projections provide for interest on Shareholder Loans to be repaid monthly from the date of drawdown (month 5) and for with full repayment of entire loan within four years of drawdown i.e. by month 50. • Whilst  a matter for investors the  Management Team believe that this is an investment for those with a longer term view as it is an initially relatively capital intensive project that will show no return on equity  until the third year after investment. • INVESTOR RETURN WILL COME IN THREE WAYS • Shareholders loans. • Shareholders • EXIT Trade sale • PROJECTED RETURNS (sanity checked against our single competitor –see below) • Projected equity yields are based on the projected pre-tax profits.. The Management Team will prioritise DIVIDEND PAYMENTS to investor shareholders, allowing their own dividend entitlements to be withheld and accrue if it is felt additional reserves should be retained. • The assumption is that 60% is distributed to investor equity shareholders based on the following: • Years 1 and 2 – no return • Year 3 – A pre-tax net profit of £791,175 x 60% =£474,705 so a yield of 25.65% • Year 4 – A pre-tax net profit of £1,010,154 x 60% =£606,092 so a yield of 32.76% • Year 5 – A pre-tax net profit of £1,048,299 x 60% =£628,979 so a yield of  33.99%. • 5 Year pre-tax yield of £2,144,316 @ 60% = £1,286,589 • 5 year average pre-tax yield for a 60% equity stake taking account of the losses in years one and two is 13.9% per annum. • By end of year 5, total Shareholders Funds of circa £4 million. • Yield per annum year 5 onwards 33.99% • Exit trade sale is the main goal of the Management Team, and depending on timing should provide for equity shareholder investors a significant yield on investment.

4. SYSTEM OVERVIEW • AERODIUM sales and operation system is the backbone of sales management and customer flow organisation in our wind tunnels. • IT HELPS TO: • Sell flights; • Sell flights photos & videos; • Serve people on time; • Share videos and photos immediately after their experience; • Monitor tunnel operations • WHAT’S INCLUDED? • Tunnel & Accessories • Training • Software • Brand • Advisory • Support

7. BASE JUMPING

9. ABSEILING & CLIMBING

10. MARKET EVALUATION • The appetite for leisure experiences are increasing at a rapid rate. The competitor landscape is perfect for immediate penetration as there is only one other similar business in the market. • The indoor skydiving leisure experience is popular and is coming from the US. The returns are sensational. The thing is, that we have better technology far more suited to the UK. • In recent years consumers have sought ever more varied and exciting leisure activity experiences. • Research by BDO published in November 2017 predicts based on research that the activities and attractions market is set to grow by between 3% and 8% every year to 2020. That is on top of about 4% growth every year since 2010. Two years ago the market was worth about £25bn and the market is considerably outperforming the UK’s economic growth. It is a growing market that seems to defy gloomy economic circumstances. The reason for this is a change in attitudes. Consumers, particularly younger adults, are looking for experiences they can “wow” their friends with, and lasting memories that can occupy the pages of social media. This is reflected in the growing use of social media and the importance many attach to producing a constant stream of ‘shared’ experiences. Source; https://www.bdo.co.uk/en-gb/blogs/talk-shop/november-2017/pcpi-blog-karting-deal-typical-of-digital-driving-changes-in-leisure-sector • Recognising that and the general trend for adrenaline type sports Indoor skydiving has become a recognised and popular leisure attraction bringing the thrill of freefalling previously only enjoyed by experienced skydivers to the general public at a fraction of the cost of skydiving and with absolutely no risk. • We have the franchise support of a well tested European Franchise based on leading technology and operational and sales and marketing experience that is shared.

12. NORTH STAR SWINDON • This £270 million development in Swindon will completely regenerate the North Star site and create a regional leisure centre that will have a transformational impact on the town. • The proposed scheme includes: • 2,000 square metre snow and ski centre – the largest in the UK • 130-bed hotel • 14-screen IMAX cinema with the largest IMAX screen in the UK • Hollywood Bowl • Further leisure attractions including trampolining and climbing • Restaurant and retail units. • Currently there are 45 Indoor Skydiving Centre's in Europe. The phenomena has taken the US by storm. iFly a US company has already begun to explore the UK as they see huge the market opportunities. The market will take at least one Indoor Skydiving Centre with or without its ancillary leisure facilities in each major city. The UK can accommodate at least ten if not fifteen Indoor Skydiving Centres. FLYCOR will have its first centre in Swindon. UNIQUE VALUE PROPOSITION

14. EXISTING MARKET • Currently there are 4 operational Indoor Skydiving Centre’s in the UK, three of which have come over from the US as the craze takes hold in America and now gradually in Europe. The general trend for adrenaline type sports Indoor skydiving has become a recognised and popular leisure attraction bringing the thrill of freefalling previously only enjoyed by experienced skydivers to the general public at a fraction of the cost of skydiving and without the traditional risks. The phenomena started in the North America where there are now 37 tunnels with a further 7 under construction. • There are currently 45 operational tunnels in Europe of which there are 4 in the UK, and there are a further 6 under construction in Europe, of which 1 is in the UK. • The top three locations in the UK made around net £1 million each in 2015. • No Indoor Skydiving location has failed. The competitor landscape perfectly positions FLYCOR to immerge as a UK market leader • The pursuit of leisure activity ‘Experiences’ in thought to be biggest growth sector in the leisure market. • Commercial developers love FLYCOR’s innovative technology that reduces investment risk and invasive construction methods by doing away with expensive and permanent concrete housings, and also the hitherto traditional and again expensive deep underground excavations of circa 3000 cubic metres. With FLYCOR this is all replaced by a metal framed structure that can be removed at any time and that sits above ground.

15. ADDRESSABLE MARKET

16. COMPETITOR FINANCIALS SANITY CHECKED The Management Team believe the forecast figures provided with this Pitch Deck are credible both in their own right but when sense checked against the best an existing comparable, IFLY who currently run 3 VWT’s in the UK, notably in Milton Keynes, the first VWT in England, which has been operating since 2004 and in Manchester and Basingstoke. iFLY filed accounts for the last 3 years show combined figures for their 3 VWT’s of: 2014 2015 2016 Turnover (£) 7,004,261 7,655,063 6,675,588 Profit before tax (£) 2,510,733 3,170,871 2,080,021 Averaged across their 3 sites they are achieving an average turnover of £2,500,000 per site and a net profit per site of £830,000 per annum.iFLY have no multi activity offering FLYCOR boast multiple activities to enhance their offering , broaden the market appeal and to increase the net returns by around £159,000 per annum.

17. BODYFLIGHT BEDFORD FLYCOR: PRICING It is intended that FLYCORwill run a competitive pricing structure similar to their UK competitors. The Ancillary Leisure Experience Activities will in some cases be used as financial loss leaders to draw greater volumes of traffic to the Hub which will generally impact on the growth of the Swindon ‘Fun Flyer’ Indoor Skydiver markets The Indoor Skydiver pricing will give likely aggregate hourly rates similar to if not more competitive than iFly albeit it should be noted that the revenue per hour used in the cash flow, reflects rates to be utilised in 2 years time in 2020 and has been conservatively put at £980 per hour. Pricing for FLYCOR have been set as per the Financial summary below. The Hub’s Ancillary Leisure Activities have been conservatively include within the Financial Forecast below with an annual turnover of £410,000 contributing approximately £160,000 Net. The Capex amounts are approximately £3,382,910 Landlord building investment circa £3,447,000 capitalised at a rent of approx 10yp. iFLYManchester Milton Keynes Basingstoke

18. FINANCIAL FORECAST - FLYCOR (includes Ancillary Leisure Activities)

19. MARKET ANALYSIS • THE GENERAL PUBLIC MARKET • This is the Indoor Skydiving primary market known as Fun Flyer sector. The Management Team aim to attract the following sectors of the general public market to FLYCOR : - • Individuals and groups simply seeking a novel and exciting leisure experience. • Specific groups seeking experiences such as stag and hen days or other groups looking for a day time activity as part of their day out. • Corporate events, Children’s parties, Keep fit classes, School groups, e.g. combined cadet forces, adventure activities. Other associations e.g. cub scouts • INDOOR FLYING AS IT’S OWN SPORT • There is a growing trend amongst the existing VWT’s in England and Europe for there to be Wind Tunnel competitions. The competition is run in exactly the same way as a skydiving competition save that it’s run in the VWT. These competitions attract not only skydivers but also a new breed of tunnel flyers that have never actually skydived. There are currently four annual VWT competitions (one in the UK, one in Spain, one in Poland and one in the Czech Republic) which attract significant publicity not merely in the skydiving world but also on media more generally. • Specific disciplines have emerged, for example a two person “dynamic” category (a synchronised 2 person aerial dance routine), performed to music and footage of the winning pair at the last big competition (in January 2016) has now appeared widely on social media and picked up 2.8 million “views” within 24 hours of it being posted on Facebook. FLYCOR aim to encourage this market by creating courses to take beginners to new levels of flight competency and by hosting competitions for indoor flyers. • THE SKYDIVER MARKET • VWT’s are a well known phenomena to skydivers. They are known to provide a cost effective training facility for skydivers wishing to practice or improve their personal skydiving skills and/or for instructors to bring students to practice. That is because of the following: • COST CONVENIENCE AND CERTAINTY • There is a substantial cost saving to skydivers in using a VWT. For a skydiver, time in the wind tunnel is cheap when compared with the cost of making a skydive from an aeroplane. It is therefore attractive to skydivers to utilise VWT’s to work on their skills as it provides them with the equivalent free fall time at a fraction of the cost. Northern Europe often has poor weather. There are many days during the year in the UK when people who may have planned to jump, simply cannot jump because of the weather. Skydiver who are time limited and have arranged to jump on a particular day and cannot do so and they cannot jump in the dark. A FLYCOR Hub means that skydivers can train both in inclement weather (therefore in practice throughout the winter), but also in the evenings, meaning that they can meet after work to train or for recreation. • ANCILLARY LEISURE ACTIVITIES • Zip wire, simulated BASE jumping, Abseiling, Climbing, all compliment the main attraction of Skydiving, they drive footfall and increase the market opportunities for the FLYCOR Hub.

20. COMPETITOR ANALYSIS • With only one other competitor in the UK FLYCOR is balanced perfectly to immerge as a market leader • WE HAVE A NEW TECHNOLOGY currently our UK competitors do not have this. • Our format can be built in a shorter time frame and can be inserted into existing Leisure complex's . No deep excavations the size of a hockey pitch and no massive concrete casings . A simple metal framed unit that stands above ground. We also have only one motor and turbine (not 4 ) which is easier to service and is more cost efficient to run. • iFly only offer Indoor Skydiving , FLYCOR offer other complimentary Leisure activities under the same roof (HUB) . • CURRENT STATUS • COMPLETED: • First Site Location • Second site: Location pending • CURRENTLY: • Finance Underwriting • NEXT: • Commission Technology

23. MARKETING • The development of an innovative, integrated PR & Marketing strategy that utilises as many relevant channels as possible to engage with key target audiences whilst providing an excellent ROI. Channels include Media Relations, Content Marketing, Email Marketing, SMS Marketing and Social Media engagement. • Initial ideas include: • Press invitation to Ground Breaking Ceremony with resulting coverage • Development/Launch of Website/Social Media channels • Weekly/Monthly Vlog to create consumer engagement • FLYCOR Membership and App development to create authority and feeling of exclusivity • Progression press articles for local/trade media • Social Media advertising with video content to increase following and engagement. Videos to include top tips for lessons, talks from Instructors and insight into site development. • Engagement with Social Influencers • Local/National flyer drop with discount code 1 month to launch. • Utilise the ancillary activities to drive traffic to the FLYCOR Hub • Channel partner relationships specialising in Leisure Experience’s will also play an important role.

24. The Team The principals have known each other and worked together for eight years have dedicated the last three years to research and development, investing in the future of FLYCOR. Valuable time has been spent inspecting VWT facilities around Europe and speaking in depth about the operational merits and technical benefits of several different indoor skydiving tunnels. There is a full time commitment from the principals to FLYCOR to deliver extremely healthy returns inline with forecasts. MT • Partner with city lawyers. Voted The Law Society Gazette Lawyer of the week in 2017.He has since 2004 been involved in the ownership and management of law firms and for the last 8 years has been part of the management of the London office of a top 100 law firm. • Passionate skydiver who has represented GB in international skydiving competitions and on 9 successful Guinness world record skydives. Worked in Indoor Skydiving facility in sabbatical. Worked and trained with many owners of Indoor Skydiving facilities. Trained the Sultan of Oman's special forces with SAS, in specialist high attitude skills. • BASE jumper and passionate about starting this business for the last five years.His experience in particular gives him a detailed understanding into the day to day operation of VWT’s . CHRIS PALMER-JEFFERY • A businessman and entrepreneur, who has created and operated SMEs with multi million pound turnovers. • Specialising in Leisure working in B2C and B2B environments with brands like The Tower of London, London Zoo, Coram's Fields , Rainforest Café, Honourable Artillery Company, and the Royal Albert Hall. • Chris understands of the leisure marketing landscape and the working knowledge of channel partners and other routes to market. Extensive experience with co-branding and sponsorship delivery and underwriting. With project management and revenue optimisation skills and considerable experience with the sales and operations related to corporate hospitality markets, including corporate team building days and other activities that are important for FLYCOR for off and on peak revenues..

25. RUSSELL HAYWARD Interim FO Russell has worked with Chris and Mark for nine years. A practising Accountant with experience of working within and advising SME’s and Start-Up Businesses across a variety of industry sectors. Influential, with a significant stakeholder engagement at Board and Audit Committee level, and externally. Key strengths in delivering practical solutions to complex issues and systems implementations. • HANNAH HAFFIELD • Marketing Director • Hannah has worked with Chris and Mark for over nine years. An award-winning PR and Marketing Consultant, boasting many years experience across a range of industry sectors, both B2B and B2C. Specialises in the creation and implementation of innovative PR and Marketing strategies that directly engage with key target audiences, whilst driving a positive and impressive ROI. Extremely passionate, hard-working and driven who always goes above and beyond to achieve results. More of the Team

26. SUMMARY • There is a demand for Leisure Experiences in every major town and conurbation. • The main 3 Indoor Skydiving Centres in the UK are supported by populations of between 113000 and 530,000. • Swindon has a population of 255,000. • Research predicts that more Leisure experiences will be sold in 2018 than ever before. • The UK can accommodate ten to fifteen major Indoor Skydiving centres • Each centre makes net between £800k and £1 million each per annum and a 60% stake typically yields returns on investments of in excess of 30% pa. North Star,Swindon FLYCOR OUR TEAM