Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — H1 FY2023 Earnings Presentation
26 slides from Hollywood Bowl's earnings presentation, May 30, 2023
Slide 1: Hollywood Bowl Group plc Half Year Results FY2023
Hollywood Bowl Group plc Half Year Results FY2023
Slide 2: Agenda
Agenda • H1 2023 highlights • Financial review » Refurbishments » New centre pipeline • UK growth strategy » Product » Technology » ESG » Puttstars • Canadian expansion • Summary and outlook Hollywood Bowl Group plc 2
Slide 3: H1 FY2023 financial highlights
H1 FY2023 financial highlights Total revenue LFL sales growth1 £110.2m +3.5% (H1 FY2022: £100.2m) (H1 FY2022: +26.8%) LFL average spend per game1 Group adjusted EBITDA £10.82 pre-IFRS 162 (H1 FY2022: £10.52) £35.1m (H1 FY2022: £34.0m) Adjusted profit after tax Adjusted earnings per share £21.9m 12.8
Slide 4: H1 FY2023 operational highlights
H1 FY2023 operational highlights Capital invested in technology UK centres and the estate refurbished/rebranded £18.9m 8 (H1 FY2022: £11.1m) New UK centres opened Centres acquired in Canada 2 3 Average refurbishment ROI LFL spend per game increase 55%+ 2.8% Best Big companies To Work UK centres with
Slide 5: Exciting and significant long term growth potential
Exciting and significant long term growth potential • Clear market leading position in UK competitive socialising market • Now the largest multi-centre bowling operator in Canada • Wide demographic appeal of bowling offer • Remain on track to deliver an average of three new centre openings a year by
Slide 6: Financial review
Financial review
Slide 7: Record revenue and earnings growth
Record revenue and earnings growth Revenue1 (£m) Group Adjusted EBITDA2 pre-IFRS 16 (£m) +20.7% vs H1 FY2022 +13.2% vs H1 FY2022 110.2 35.1 91.3 31.0 69.2 21.6 12.0 (7.5) H1 20 H1 21 H1 22 H1 23 H1 20 H1 21 H1 22 H1 23 Adjusted profit before tax3 (£m) Adjusted Earnings Per Share3 (Pence) +11.7% vs H
Slide 8: Record breaking H1 revenue performance
Record breaking H1 revenue performance • Record H1 revenue of £110.2m up 20.7% vs • H1 FY2022 - TRR of VAT bowling benefit of £3.0m proforma H1 FY2022 revenue and PY £5.8m • LFL revenue growth of 3.5% (vs H1 FY2022) • All ancillary revenues in LFL revenue growth driven by growth in number of games p
Slide 9: Record EBITDA performance
Record EBITDA performance (£m) H1 FY2023 H1 FY2022 H1 FY2022 Movement vs H1 (statutory) (excluding VAT FY2022 (excluding bowling benefit) VAT bowing benefit) Revenue 110.2 100.2 91.3 +20.7% • Total revenue up 20.7% on H1 FY2022 Gross profit 91.3 86.5 77.7 +17.5% excluding the benefit of TRR of VAT o
Slide 10: Input inflation under control
Input inflation under control Themes Cost as a % to revenue H2 inflation pressure Mitigation Labour market pressure 18 – 18.5% Low payroll ratio, incentive 18 – 18.5% 7-8% and development schemes Food and drink inflation 8.5% 10% Food cost represents 3.5% of 8.5% 10% revenue. Modest price rise Utili
Slide 11: Strong trading driving free cash flow
Strong trading driving free cash flow • Group adjusted operating cash flow of £26.7m • Investment in solar reducing exposure to energy price • Working capital movement due to payment of record increases centre management bonuses from FY2022 • Generated free cash flow of £15.3m in H1 • Continued main
Slide 12: Attractive returns from refurbishments
Attractive returns from refurbishments • SPG performance +6.4% • AMF centres now all rebranded to Hollywood Bowl • Lineage +5.9% • Design elements evolve in each new investment - no cookie cutter approach • Space optimisation growing amusement spend • 2nd and 3rd generation refurbishments also payba
Slide 13: Strong new centre UK pipeline to FY2025
Strong new centre UK pipeline to FY2025 Strong performance from new centres Continued focus on quality of openings • Continued focus on quality locations to drive long term sustainable EBITDA • Speke and Peterborough already opened in FY2023 • Last four openings on track to deliver 35%+ ROI with Mer
Slide 14: Financial outlook for FY2023
Financial outlook for FY2023 Strong start to FY2023 • H1 LFL of 3.5% vs H1 FY2022 • Strong performance in Canadian business » Acquisitions in February performing in line with business case » Full year effect of growth in Canada • Interim dividend of 3.27 pence per share Managing cost pressures • Pay
Slide 15: Driving our growth strategy
o Driving our growth strategy
Slide 16: Continuous product improvement
Continuous product improvement Ongoing investment in core offer Best in class amusement offer Value, quality product, served fast • “Pins on Strings” installed in an • Increased density of machines • Simplified menu content with small additional seven centres tweaks • Significant investment across t
Slide 17: Investment in technology to support next stage of growth
Investment in technology to support next stage of growth Significant investment in technology to enhance the digital customer journey •New core reservations platform under development »Scalable open technology »Revenue and yield enhancements »Connectivity with marketing systems »Shared platform with
Slide 18: Good progress with our ESG strategy
Good progress with our ESG strategy Safe and inclusive destinations Outstanding workplaces Sustainable centres Priority issues Priority issues Priority issues • Talent attraction and retention • Waste management • Health and safety • Diversity and inclusion • Energy efficiency • Accessibility and we
Slide 19: Puttstars
Puttstars Evolution of the concept •Customer research project informing concept and brand evolution » Varying course difficulties to encourage second games » Upgraded digital journey and external signage » New brand communications framework launching in H2 » Space optimisation (Leeds duckpin, Harrow
Slide 20: Canadian expansion
© Canadian expansion
Slide 21: Canada strategy and trading update
Canada strategy and trading update Investment rationale • Canada is a well-established market with similarities to the UK • Well operated, asset backed business that provides the Group with a strategic platform for growth • Value add via our customer-led operating model and technology H1 financial u
Slide 22: Pillars of Canadian growth
Pillars of Canadian growth Extending reach via Refurbishment of core Greenfield sites Supporting the industry acquisition estate • Extend reach across Canada • Striker Bowling Solutions is a • Single site and multi-site • Investment to drive dwell time with new centre development supplier and instal
Slide 23: Summary and outlook
Summary and outlook
Slide 24: Outlook for H2 FY2023
Outlook for H2 FY2023 Market leader with high quality, well-invested estate • Led by experienced management team Continued demand for affordable leisure experiences • Volumes still strong even when compared to a record FY2022 • Value for money offer with family of four at less than £25 Well position
Slide 25: Appendices
© Appendices
Slide 26: Management
Management Stephen Burns Chief Executive Officer Appointment Stephen joined the Group as Business Development Director in 2011. He was promoted to Managing Director in 2012 and became Chief Executive Officer in 2014. Skills and experience Before joining the Group, Stephen worked within the health an
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