Viva Leisure Ltd. · ASX:VVA
Viva Leisure — Investor Presentation (November 2020)
28 slides from Viva Leisure's investor presentation, Nov 27, 2020
Slide 1: Capital Raising – Investor Presentation
C A P I TA L R A I S I N G – I N V E S T O R P R E S E N TAT I O N 27 NOVEMBER 2020 1 Acquisition, Trading Update and Capital Raising
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important information No investment or financial product advice This presentation has been prepared by Viva Leisure Limited ("Viva Leisure") in relation to an institutional placement of The information contained in this presentation does not constitute investment or f
Slide 3: Important Notice and Disclaimer (continued)
Important Notice and Disclaimer (continued) To the maximum extent permitted by law, Viva Leisure and its related bodies corporate, officers, employees, agents Effect of Rounding and advisers nor any other person referred to in this presentation (the “Limited Parties”): A number of figures, amounts,
Slide 4: Presenting Today
Presenting Today Harry Konstantinou Managing Director & Chief Executive Officer Kym Gallagher Chief Financial Officer 4 Trading Update & Capital Raising NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 5: Table of Contents
Table of Contents 06 Executive Summary ▪ Current Trading ▪ Growth Objectives ▪ Capital Raising 15 Viva Growth Initiatives ▪ Funding and Consideration ▪ Acquisition Pipeline ▪ Timeline of Historic Acquisitions ▪ Plus Fitness Buyback ▪ Near Term Plan 20 Equity Raising Overview ▪ Offer Metrics and Summ
Slide 6: Executive Summary
Executive Summary 6 Acquisition, Trading Update and Capital Raising
Slide 7: Executive Summary
Executive Summary ▪ All locations across Australia open for business following periods of disruption. Currently 91 locations ▪ Record Viva Leisure membership levels with 103,000 members. When including 175,000 Plus Fitness Current Trading network members, total membership is 278,000 members ▪ Estima
Slide 8: The Viva Leisure business
The Viva Leisure business Unique Hub & Spoke ▪ Larger clubs, supported by smaller clubs and boutiques, creating a unique Viva Leisure membership eco- Model system ▪ Fastest growing gym group in Australia by number of clubs opened in FY2020 Fast Growing and ▪ 2nd largest owner of health clubs in Aust
Slide 9: Viva Leisure Brands
Viva Leisure Brands One size does not fit all 9 Trading Update & Capital Raising NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 10: Viva Leisure Today
Viva Leisure Today 110 Viva owned locations now secured and/or open 103k members 12 Locations 288k members including Plus Fitness opened FY21 20.5k visits average per day (Viva owned locations) 20+ additional locations to open in FY21 ~$80.4m revenue run rate based on annualised ~$6.7m Oct-20 revenu
Slide 11: Locations Now Open and Additional Locations
91 Locations Now Open 19 Additional locations secured 110 Total locations open or opening soon (excluding future acquisitions) 11 Trading Update & Capital Raising NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 12: Member Snapshot
Member Snapshot Members by State Members by Brand 11% 3% QLD Other 6% VIC 26% FitnFast 46% Growth in members 1 ACT 66% 37% Club Lime 102,960 NSW 5%, Hiit Republic 94,196 • Member numbers +8,764 above 30 June 2020 54,039 • +7,000 new members since 1 September 2020 • All members off ‘COVID’ suspension
Slide 13: Revenue
Revenue Full Year Revenue ($m) Revenue by Month ($m) $6.7 $5.8 $1.0 $0.6 $40.9 $5.7 $33.1 $5.1 $5.2 $4.4 $24.1 $18.4 $20.7 $2.1 $0.0 $0.0 FY2016 FY2017 FY2018 FY2019 FY2020 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Viva Leisure Viva Leisure AFM ▪ October 2020 and prior excludes revenue from V
Slide 14: Member Visitation
Member Visitation Member Visits (‘000) Visits (LHS) Unique Members (RHS) 700 70 600 60 • Increasing member visits provides a good source of data on member Unique Members (‘000s) willingness to attend facilities post Member Visits (‘000s) 500 50 COVID 400 40 • Member visits in July exceeded and conti
Slide 15: Viva Growth Initiatives
Viva Growth Initiatives 1 Acquisition, Trading Update and Capital Raising
Slide 16: Funding and Consideration
Funding and Consideration EQUITY RAISING DEBT FACILITY CONSIDERATION ▪ $30 million fully underwritten ▪ Previously announced CBA Market ▪ Viva Leisure has identified several Placement to sophisticated and Rate Loan facility, used for accretive acquisition opportunities institutional investors Acquis
Slide 17: A Pipeline of Strategic & Accretive Opportunities
A Pipeline of Compelling, Strategic & Accretive Opportunities ACQUISITION OF HEALTH CLUB BUYBACK OF FRANCHISEE GREENFIELD ROLLOUTS BUILDING GROUPS AND LOCATIONS OWNED PLUS FITNESS FRANCHISES FOUNDATIONS FOR FUTURE GROWTH ▪ Viva Leisure has a robust and deep pipeline ▪ Viva Leisure recently completed
Slide 18: Acquisition Timeline and Experience
Acquisition Timeline and Experience 14 38 Acquisitions Locations 1 club 1 club 1 club 8 clubs 13 clubs AFM MFA 2018 2018 2019 2019 2020 2020 * 5 clubs 1 club 3 clubs 1 club 2 clubs 2 clubs 2020 & pre IPO 2018 2019 2019 2019 2020 beyond * Acquisition of the Plus Fitness brand, systems and Master Fran
Slide 19: 2025 Target Locations
2025 Target Locations 400+ ▪ Viva Leisure has a network plan to add approximately 300 locations (including greenfield and acquisition of Plus Fitness Number of total locations franchises). ▪ This results in a 2025 Target of 400+ Viva Leisure locations ▪ Viva Leisure recognises the potential for addi
Slide 20: Equity Raising Overview
Equity Raising Overview 2 Acquisition, Trading Update and Capital Raising
Slide 21: Equity Raising Overview
Equity Raising Overview ▪ Fully underwritten Institutional Placement (“Equity Raising” or “Placement”) to professional and sophisticated investors to raise Offer Size & approximately $30.0 million (the “Offer”) Structure ▪ The Placement of approximately 10.3 million ordinary shares (“New Shares”) to
Slide 22: Use of Funds and Offer Timetable
Use of Funds and Offer Timetable Sources of Funds ($ millions) Event Date Cash on Hand* 4.0 Trading Halt Friday, 27 November 2020 Available Market Rate Loan 17.0 Equity Raising 30.0 Announcement and Completion of Equity Monday, 30 November 2020 Raising Total Sources 51.0 Trading Halt Lifted, Trading
Slide 23: Foreign Selling Restrictions
Foreign Selling Restrictions 2 Acquisition, Trading Update and Capital Raising
Slide 24: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of Viva Leisure in any jurisdiction in which it Singapore would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or This
Slide 25: Key Risks
Key Risks 2 Acquisition, Trading Update and Capital Raising
Slide 26: Key Risks
Key Risks Introduction The detection of infection at certain of Viva Leisure’s health club facilities could also have a material adverse impact This section outlines some of the key risks associated with an investment in Viva Leisure shares. This is not an exhaustive on Viva Leisure's reputation and
Slide 27: Key Risks (continued)
Key Risks (continued) 1.5 Reputational damage 2. General risks Viva Leisure's reputation could be adversely impacted if it suffers from any adverse publicity. Examples of adverse 2.1 Macroeconomic and Socioeconomic factors publicity include health and safety issues or incidents affecting members, po
Slide 28: Key Risks (continued)
Key Risks (continued) 2.6 Forward-looking information The forward-looking statements, opinions and estimates provided in this presentation rely on various contingencies and assumptions. Various factors and risks, both known and unknown, many of which are outside the control of Viva Leisure, may impa