Viva Leisure Ltd. · ASX:VVA
Viva Leisure — FY2019 Earnings Presentation
26 slides from Viva Leisure's earnings presentation, Aug 28, 2019
Slide 1: Full Year FY2019 Results
F U L L Y E A R F Y 2 0 1 9 R E S U LT S 28 August 2019 1 FY2019 Results Presentation
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important information Future performance The information in this presentation is general in nature and does not purport to be complete. It has been prepared by This presentation may contain certain ‘forward-looking statements’. Forward-looking statements include those
Slide 3: Presenting today
Presenting today Harry Konstantinou Managing Director & Chief Executive Officer Kym Gallagher Chief Financial Officer 3 FY2019 Results Presentation
Slide 4: Agenda
Agenda Harry Konstantinou • Introduction • Performance Highlights • Operational Achievements Kym Gallagher • FY2019 Results • Financial Snapshot • Members Snapshot • Cashflow & Balance Sheet Harry Konstantinou • Business Overview & Outlook • Investment Highlights • Introducing FaaS • What’s coming u
Slide 5: Performance Highlights
PERFORMANCE HIGHLIGHTS 5 FY2019 Results Presentation
Slide 6: FY2019 Performance Highlights
FY2019 Performance Highlights Exceeded Prospectus forecasts on all key metrics REVENUE EBITDA NPAT EBITDA MARGIN $33.08m $7.29m $3.15m 22.0% Prospectus 0.5% Prospectus 7.0% Prospectus 17.6% Prospectus 20.7% PCP 37.1% PCP 39.9% PCP 8.2% PCP 21.6% MEMBERS CLUB m2 LOCATIONS UTILISATION 54,039 35,893 40
Slide 7: FY2019 Operational Achievements
FY2019 Operational Achievements Viva continues to get fit for the future Monthly Recurring Locations Locations Locations Revenue (ACT) (NSW) (VIC) $2.26m $3.34m 19 29 2 10 0 1 June 2018 June 2019 June 2018 June 2019 June 2018 June 2019 June 2018 June 2019 Monthly Member New/Returning Instructor Memb
Slide 8: Financial Results
FINANCIAL RESULTS FINANCIAL RESULTS 8 FY2019 Results Presentation
Slide 9: FY2019 Result Exceeds Prospectus Forecasts
FY2019 Result Exceeds Prospectus Forecasts FY2019 vs FY2019 Variance FY2018 Comments Profit and Loss ($m) Prospectus FY2018 Actual % Actual Variance % Revenue 33.08 32.91 0.5% 24.13 37.1% • FY2019 Prospectus forecast Operating Costs 25.80 26.10 (1.2%) 18.92 36.3% exceeded on all lines EBITDA 7.29 6.
Slide 10: Financial Snapshot
Financial Snapshot Significant revenue growth YoY Continued margin improvement Revenue ($m) EBITDA ($m) EBITDA margin(%) 33.1m 8.2m 24.8% 21.6% 24.1m 5.2m 15.8% 20.7m 3.3m 18.0m 18.4m 10.0% 1.8m 1.0m 5.7% FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY2018 FY2019 FY2015 FY2016 FY2017 FY20
Slide 11: Revenue Growth
Revenue Growth 11 FY2019 Results Presentation
Slide 12: Members Snapshot
Members Snapshot Members EBITDA per member ($ p.a.) FY2019 Drivers • Organic Growth ~ 7.8% • Acquisitions 8,669 54,039 $183 • Rollouts 6,954 $161 35,631 $118 29,124 25,218 26,754 $71 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EBITDA per member based on average member number for the year Membe
Slide 13: Members Growth
Members Growth 13 FY2019 Results Presentation
Slide 14: Cashflow & Balance Sheet
Cashflow & Balance Sheet Balance Sheet ($m) FY 2019 FY 2018* Cashflows ($m) FY2019 FY2018* Cash 14.39 1.06 Opening cash 0.54 0.62 Receivables and other Current Assets 0.70 0.43 Cash acquired under group restructure 0.64 0.00 P, P & E 19.20 9.63 Cashflows from operations 7.98 2.21 Intangibles 6.56 0.
Slide 15: Business Overview & Outlook
BUSINESS OVERVIEW & OUTLOOK 1 FY2019 Results Presentation
Slide 16: The Viva Business: health is the new wealth
The Viva Business health is the new wealth Viva Leisure Limited (Viva Leisure) operates in the health and leisure industry in Australia, originally commencing operations in January 2004 with one facility and now Our Brands operating 42 different business sites, the majority of which are health clu
Slide 17: Scalable Business Model
Scalable Business Model fitness is an essential part of life Viva Leisure’s hub and spoke model New concepts, new USP’s Viva Leisure operates what it calls a ‘hub and spoke’ model with larger (big box) health clubs being supported by smaller (standard, express As Viva Leisure rolls out new concept
Slide 18: Locations Reaching more Australians
Locations Reaching more Australians 42 11 4 Locations under 24 Locations under Operating New locations negotiation for locations opening soon negotiation to lease acquire TODAY TOMORROW THE DAY AFTER IN OUR SIGHTS Our Club Lime and hiit republic Our pipeline of new locations Our pipeline never stops
Slide 19: Geographical coverage
Geographical coverage opened and secured locations Health clubs Boutiques As at 28 August 2019 19 FY2019 Results Presentation
Slide 20: Investment Highlights
Investment Highlights not all health clubs are built the same Growth opportunity Attractive member High quality facilities Technology focused Strong cash flow from proposition operator model Highly fragmented market with High levels of member Data driven site selection Technology focused decision- R
Slide 21: Introducing FaaS
Introducing FaaS our data is what makes us different The Viva Fitness as a Service (FaaS) model Viva Leisure’s Model Traditional Model Pricing Affordable, no contract, no joining fee Expensive locked-in pricing model with joining fees Paper based, completed in person, sometimes requiring an Sign-up
Slide 22: What's coming up
What’s coming up opportunities to continue delivering profitable growth New Locations New Revenue Growing our portfolio of locations Generating more from our extensive organically and by acquisition and loyal membership base growing pipeline Digital Membership Offering Leveraging our data analytics
Slide 23: Current trading
Current trading strong performance for first two months Revenue Great start to FY2020 with record revenue recorded Locations Two additional hiit republic locations opening in September Membership >57,000 members achieved, +2500 organic and +500 acquired in first 60 days of FY2020 New site and acquis
Slide 24: We will continue to…
We will continue to… EXECUTE LEVERAGE INNOVATE Execute on our business Further grow our unique Further cement our position as plan and expand our footprint and network in the leading innovator in the presence in all relevant existing and new markets, health club industry by evolving existing and new
Slide 25: Outlook for FY2020
Outlook for FY2020 Viva Leisure confirms it is on track to exceed the proforma FY2020 forecast as set out in the May 2019 Prospectus. Management looks forward to updating the market in relation to new club openings and acquisitions currently under negotiation. 25 FY2019 Results Presentation
Slide 26: Questions?
QUESTIONS? 2 FY2019 Results