2018 Normalized EBITDA increased +0.1% YoY and decreases 6.4% in 4Q18 NIIF 16 (Lease), advisory services and HOLD normalized

Transcription

1 2018 Normalized EBITDA increased +0.1% YoY and decreases 6.4% in 4Q18 NIIF 16 (Lease), advisory services and HOLD normalized HIGHLIGHTS EBITDA As of December 2018 decreased 3.3% YoY, meanwhile, Hold-normalized EBITDA, excluding non-recurring expenses for advisory services related to strategic initiatives, increased 3.0% YoY. 4Q18 EBITDA increased 2.0% YoY (+2.7% Hold-normalized EBITDA) revenues: -3.1% YoY: main reasons are: i) lower revenue 2nd semester in Uruguay, as a consequence of fewer Argentinians visits due to the macro economic scenario, ii) Lower revenues 3Q in Santiago, due to property remodeling, iii) Lower revenues in Antofagasta, due to fewer visits, iv) lower revenue in 4Q in Viña del Mar, due to lower tourists visits y entry ticket charged by the municipality and v) lower retail activity in Chile during 4Q18. 4Q18 Profit/Loss decreased by CLP$ MM 13,325 YoY, to -CLP$ MM 9,257, due to: i) exchange rate differences of Punta del Este related debt (-CLP$ MM 3,321), ii) deferred tax impairment in Chiloé (-CLP$ MM 3,034), iii) restructuring expenses (-CLP$ MM 1,799). Accumulated Profit / Loss reached - CLP$ MM , lower figure compared to 2017; associated with non-recurring effects: i) partial prepayment of the international bond and the total prepayment of local bonds C, E and F, ii) exchange rate differences associated to the international US$ bond, iii) restructuring expenses CLP$ MM and iv) expenses for advisory services related to strategic initiatives CLP$ MM (CLP$ MM 845 en EBITDA). In November 2018, Enjoy S.A. issued a UF 3,000,000 bond in the local market, unsecured, 10 years bullet, at 3,90% annual coupon rate and an effective annual rate of 4.02%. The funds will be used to prepay debt and finance new projects. This Bond lowers the average rate from 10.1% to 9.7% and increases the duration from 1.87 to 3.71 years. December2018 Enjoy pre-paid local Bond for UF , allowing Enjoy Santiago mortgages release. Humphreys upgraded ENJOY S issuer default rating to BBB+, and revised the rating outlook to stable from positive, and S&P maintained B rating, stable outlook. Los Ángeles y San Antonio M&A approved by FNE y SCJ: estimated date to start operations 2Q19. Non-strategic assets sales plan initiated (CLP$ MM 15,000). Adoption of Accounting Standard IFRS NIIF16: long-term lease expenses are recorded as a liability and intangible asset (amortization and financial expenses), so that the reported EBITDA is not comparable with 2017 (CLP$ MM 3.516). New customer development area: focus on developing new markets and sales distribution chain in Latin America, USA and Europe. 71,529 REVENUE CLP$ MM 67,143 4Q17 4Q18 4Q17 4Q18 Mainly due to lower WIN in Punta del Este and Viña del Mar. EBITDA CLP$ MM 17,229 17,580 Normalized EBITDA CLP$ MM 16,863 17,314 4Q17 4Q18 EBITDA increased 2.0%, in Santiago, Puerto Varas, Pucón and Villarica. Hold-normalized EBITDA increased 2.7% was very positive year for ENJOY, we fulfilled great milestones: We awarded 3 licenses to operate Coquimbo, Viña del Mar and Pucón casinos, we added a new license to operate Puerto Vara s Casino, and we sealed the purchase of 2 new casinos in Chile. There are clear growth prospects and financial health, that has allowed us to improve our risk ratings and to continue to advance in debt restructuring. We recently the issuance of a 10-year bond at UF 3.90% rate, lowering our average debt cost and improving our maturity profile, to finance projects in development ". NET INCOME (LOSS) CLP$ MM 4,068 4Q17 Eliseo Gracia M. CEO 4Q18-9,257 Loss due to exchange rate differences, Deferred tax impairment in Chiloé, financial costs and restructuring expenses

2 During 4Q18 total revenues decreased 6.1% (YoY), due to lower WIN in Enjoy Punta del Este due to lower gaming tables DROP and y entry ticket charged by the municipality in Viña del Mar, that had negative effects on customers visits and therefore in Win. Partially off-set by Enjoy Santiago, due to higher DROP ( 54%) and HOLD increase. GAMING: Revenues decreased 4.9% YoY during 4Q18, due to lower gaming tables WIN ( 4.8% a/a), in Enjoy Punta del Este ( 23.6% a/a) as a consequence of 11.8% lower DROP and -2.3 bps. YoY in HOLD, and in Enjoy Viña del Mar ( 19.0% YoY) due to lower DROP ( 3.2%) and -5.6 bps. YoY in HOLD. Meanwhile Slots WIN decreased 1.7%, mainly in Enjoy Viña del Mar ( 5.2%) and Enjoy Antofagasta ( 5.9%), due to lower COIN IN. As of December 2018 (YTD), revenues decreased 1.3% YoY. Gaming tables WIN 2.2% YoY, due to lower HOLD (2.2 bps. YoY, partially off-set by higher DROP ( 8.7% YoY), mainly in Enjoy Santiago ( 126.9%) and Enjoy Pucón ( 29.7%). Meanwhile, Slots WIN increased 1.1% YoY due to HOLD optimization associated with the value creation initiatives. NON-GAMING: 9.3% YoY during 4Q, due to lower FF&BB revenues 14.1% a/a, in Chile and Uruguay. Hotels revenues 6,9% a/a, mainly in Chile. En Chile: GAMING: revenues increased 3.9% YoY during 4Q, due to an increase of 23.6% YoY in gaming tables WIN, explained by higher HOLD in Enjoy Santiago, Enjoy Antofagasta and Enjoy Pucón, and higher DROP in Enjoy Santiago and Enjoy Pucón. All partially off-set by lower Slots WIN ( 1.2%), explained mainly due to lower COIN IN in Enjoy Viña del Mar and Enjoy Antofagasta. NON-GAMING: 9,9% YoY, due to lower FF&BB and Hotels revenues, due to supply and operation optimization, lower visits and fewer events in Viña del Mar, as a consequence of the uncertainty of the licenses renewal. In Uruguay: GAMING: 4Q18 revenues decreased 19.7% compared to the same period of previous year, affected mainly by lower HOLD due to the macro economic scenario of Argentina. The Argentine effect is reflected in a lower DROP ( 11.8%) in gaming tables. Meanwhile, there was a lower HOLD in gaming tables (15.1% in 4Q18 compared to 17.4% in 4Q17). In USD, revenues decreased 23.2% during 4Q18. NON-GAMING: decreased 6.5% YoY in CLP, due to lower revenues from FF&BB (-US$MM 1.5) and hotels YoY ( 17.0%), affected mainly by the macro economic scenario of Brazil and Argentina. Decreased 2.4% YoY during 4Q18 and 3.0% YoY as of December 2018 (YTD), in line with revenue decrease (mainly due to cost efficiencies derived from the Value Creation Plan (VCP), both in Chile and Uruguay). Sales and administrative expenses increased 10.4% (CLP$ 646 millions). As of December 2018 (YTD), expenses increased 1.8% YoY, mainly due to non-recurring expenses associated with third-party consultancies in line with the aforementioned strategic initiatives (Value Creation Plan) for CLP$ 845 million.

3 Adoption of Accounting Standard IFRS 16: long-term lease expenses are recorded as a liability and intangible asset (amortization and financial expenses), so that the reported EBITDA is not comparable with 2017 (CLP$ MM 3.516). EBITDA 4Q18 increase 2.0% YoY (+2.7% YoY HOLD normalized), and Lease and HOLD normalized -6.4% a/a EBITDA full year 2018: - 3.3% YoY (+3.0% YoY advisory services and HOLD normalized), and lease, advisory services and HOLD normalized +0.1% YoY + %

4 Quarter CLP$ millions 4Q17 4Q18 % 2017 YTD 2018 % Revenue 71,529 67, % 283, , % Sales Costs -54,101-52, % -223, , % Gross margin 17,428 14, % 60,101 58, % SG&A expenses -6,194-5, % -27,753-28, % Provision for doubtful accounts % -4,973-3, % Other income by function , % -1,526-4, % Other gains (losses) -1, % -3,112-3, % Operating Margin 9,347 5, % 27,711 22, % Financial Income % % Financial expenses -5,411-8, % -32,985-45, % Share of profit (loss) of associates % 1, % Exchange Rate Differences 2,945-2, % 7,339-2, % Indexation for designated assets/liabilities for inflation % -3,171-1, % Income before tax 6,371-6, % , % Income tax (expense) benefit -2, % 3,570 2, % Net Income, attributable to owners of parent 4,068-9, % , % Net Income, attributable to non-controlling interests % 4, % Net Income 4,361-8, % 4,098-24, % Quarter CLP$ millions 4Q17 4Q18 % % Gross margin 17,428 14, % 60,101 58, % SG&A expenses -6,194-5, % -27,753-28, % Depreciation & Amortization 5,995 8, % 24,752 25, % EBITDA 17,229 17, % 57,100 55, % Hold Efect ** ,964 Consultancies 845 Normalized EBITDA 16,863 17, % 56,341 58, % Normalized EBITDA Margin 23.6% 25.8% 19.9% 21.1% Leasing 1,641 3,516 1,641 3,516 YTD Normalized EBITDA w/o leasing 18,504 17, % 57,982 58, % * Exclude HOLD effect over theoretical HOLD and non-recurring expenses ** Adjustment to eliminate differences between Hold and the Theoretical Hold in the income of game tables.

5 CLP$ millions UNIT Punta del Este Antofagasta Coquimbo Viña del Mar Santiago Pucon Chiloe Villarrica Puerto Varas ENJOY S.A. FOURTH QUARTER % YoY % YoY Revenue 23,210 19, % 86,624 78, % EBITDA 6,617 2, % 14,787 12, % EBITDA M g. 28.5% 13.0% 17.1% 15.3% Revenue 8,041 7, % 31,066 30, % EBITDA 2,692 2, % 9,460 8, % EBITDA M g. 33.5% 33.4% 30.5% 28.7% Revenue 8,177 8, % 33,871 34, % EBITDA 2,796 2, % 11,157 11, % EBITDA M g. 34.2% 31.3% 32.9% 34.3% Revenue 14,188 12, % 57,393 56, % EBITDA 2,119 1, % 8,627 9, % EBITDA M g. 14.9% 11.0% 15.0% 17.0% Revenue 9,578 11, % 41,265 41, % EBITDA 2,636 3, % 11,291 11, % EBITDA M g. 27.5% 32.6% 27.4% 27.9% Revenue 3,793 3, % 17,789 17, % EBITDA % 3,321 3, % EBITDA M g. 15.2% 19.9% 18.7% 22.4% Revenue 1,530 1, % 6,024 6, % EBITDA % % EBITDA M g. 4.8% -2.4% -0.3% -0.6% Revenue % 2,552 2, % EBITDA % % EBITDA M g. 23.3% 30.2% 12.5% 24.7% Revenue 1,113 1, % 3,217 3, % EBITDA % % EBITDA M g. 24.7% 41.6% 1.9% 25.7% Revenue 71,529 67, % 283, , % EBITDA 17,229 17, % 57,100 55, % EBITDA M g. 24.1% 26.2% 20.1% 20.1% YTD 2018 Main Effects Lower revenues in 2nd semester in Uruguay Lower revenues 3Q in Santiago Lower revenues in Antofagasta Lower revenues 4Q in Viña del Mar (*) Enjoy S.A. includes eliminations, corporate expenses and Enjoy Vacations program Antofagasta Coquimbo Viña del Mar Santiago Pucón Chiloé Punta del Este GAMING 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 # Visits 111, , , , , ,851 92,391 87,725 37,159 34,266 20,382 17,197 45,448 36,524 Slot Machines Hold 7.3% 7.4% 7.4% 8.8% 8.0% 8.5% 5.9% 6.1% 9.6% 9.6% 6.8% 7.5% 5.7% 5.4% WIN (CLP$MM) 5,450 5,128 5,947 6,249 10,726 10,166 6,807 6,970 2,060 2, ,892 6,625 # Slot Machines ,454 1,500 1,176 1, Game Tables Hold 20.1% 33.1% 28.7% 22.4% 34.3% 28.7% 23.9% 28.9% 28.9% 32.4% 32.3% 35.0% 17.4% 15.1% WIN (CLP$MM) 780 1,041 1, ,975 2,411 2,865 5, ,438 9,509 # Game Tables HOSPITALITY ADR 75,205 80,320 82,508 92, , ,040 83,235 90,032 63,224 69,878 72,381 76, , ,470 Ocupancy 75.7% 74.3% 88.7% 82.5% 89.7% 81.4% 78.1% 68.8% 74.4% 67.3% 76.3% 71.1% 87.9% 79.7%

6 Below is the status of some of the initiatives of the Value Creation Plan : Purchase optimization In 2018 we implemented Strategic Sourcing, that allows to capture systematic savings in procurement processes thanks to improved negotiations with suppliers: 23 categories negotiated in Savings: CLP$ MM 744 Run-rate savings in EBITDA categories in 2018: CLP$ MM Work force efficiencies Structure optimization and shift/capacity effective implementation : 2018 Savings: CLP$ MM 2.977, generated by VCP plan (CLP$ MM 5.188) partialy off-set by inflation effects, exchange rate differences and syndic negotiations Run-rate savings CLP$ MM Commercial Strategy Transformation A centralized analytics team was created to increase decision making speed This process begins with customer preferences diagnosis, competitiveness and organization, year 2019 M&A Los Angeles y San Antonio Debt issuance and long term financial plan (risk ratings improovement) Non-core assets sale Continue to capture savings

7 NFD/EBITDA Adj. Ratio reached 4.31x in 4Q18 (4.33x in 3Q18), due to a decrease in debt stock and an increase in cash, as a consequence of operational cash generation (CLP$ MM 48,230), and control and capex optimization initiatives, and working capital # Stocks 2,370,768,285 4,694,959,928 Market Cap CLP$ 127 MM CLP$ 265 MM Financial Ratios NFD / Aj. EBITDA 5.13x 4.31x Total liabilities / Total Equity 6.00x 2.75x Short term debt 0.28% 0.29% Long term debt 0.72% 0.71% NFD / Equity 4.35x 1.47x Aj. EBITDA / Net Financial Expenses* 2.00x 2.25x *: According to International Bond Indenturede CLP$ MM dec 18 Short term bank debt 36,596 Long term bank debt 20,838 Leasing 24,927 Commercial papers 37,530 Local Bond 82,589 Internacional Bond 133,438 Total 335,918 New Local Bond Issuance Amount: UF Annual coupon rate: 3.90% Duration: 8.5 years Bullet 10 years Unsecured Use of proceeds: 70% Refinancing & 30% New Projects Working capital Chile CLP$MM Uruguay US$M Operative Working Capital dec-17 dec-18 dec-17 dec-18 Trade debtors and other accounts receivable, current 18,344 21,581 34,392 32,167 Inventories 2,865 2,806 2,133 1,635 Trade debtors and other accounts receivable, no current 24,458 41,161 25,128 24,987 Total -3,249-16,774 11,397 8,815 13,525 2,582 Tax Working Capital dec-17 dec-18 dec-17 dec-18 Total 3,220 8,375 1,959 6,513-5,155-4,554 Other Working Capital dec-17 dec-18 dec-17 dec-18 Total ,289-11,950-11,338 1, Consolidated working capital as of December 2018 freed up funds for CLP $ MM 7,712, positively impacted during the last quarter due to accounts payable recovery in Chile. Taxes working capital is impacted by the accrual of recoverable taxes and Uruguay taxes paid in advance. Other working capital is impacted by decrease in other non-financial assets in Chile, insurance expenses, guarantees and leases paid in advance. Total 9,507-2,584 Total CLP$MM 9,507-1,795

8 Investor Relations CFO: Head of Investor Relations: Esteban Rigo-Righi Carolina Galvez Disclaimer The information presented in this document has been prepared by Enjoy S.A. (hereinafter the "Company" or "Enjoy, with the purpose of providing general background information about the Company.) In its preparation, information provided by the Company and public information has been used. In the opinion of the administration of Enjoy SA, these consolidated financial statements adequately reflect the financial and economic situation of the Company as of December 31, All figures are expressed in Chilean pesos (Closing exchange rate CLP / USD as of December 31, 2017) and are issued in accordance with the provisions of General Standard No. 346 (which repealed General Standard No. 118 and modified General Standard No. 30) and Circular No. 1,924, both, of the Superintendence of Securities and Insurance. Enjoy S.A. is a Public Limited Company incorporated by public deed dated October 23, Enjoy S.A. is the parent company of a group of companies dedicated to the exploitation of gambling casinos, hotels, discos, restaurants, event halls, shows, traders, leasing companies, importers, exporters of slot machines and their accessories, real estate companies, investment companies and agencies of business, among others, which are organized through three subsidiaries of the first line, which are detailed below: Enjoy Gestión Ltda., Is the society under which mainly companies that are dedicated to the operation of gaming casinos, restaurants, hotels, discoteque, event halls and shows, among others and also companies that provide advisory services, are grouped. management and operation to the rest of the group companies and third parties. Inversiones Enjoy S.p.A., is the company under which the investments and operations abroad are grouped. Inversiones Inmobiliarias Enjoy S.p.A., is the company under which the real estate business in Chile is grouped.