Viva Leisure Ltd. · ASX:VVA
Viva Leisure — Investor Presentation (June 2020)
29 slides from Viva Leisure's investor presentation, Jun 4, 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 4 JUNE 2020 1 FY2019 Results Presentation
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important information An investment in shares in Viva Leisure is subject to known and unknown risks, some of which are beyond the control This presentation is dated 4 June 2020 and has been prepared by Viva Leisure Limited (“Viva Leisure”) and includes of Viva Leisure
Slide 3: Important Notice and Disclaimer (continued)
Important Notice and Disclaimer (continued) ▪ do not make any representation or warranty, express or implied, as to the accuracy, reliability, fairness or Investors should note that this presentation includes both audited and unaudited financial information for various periods. This completeness of
Slide 4: Presenting Today
Presenting Today Harry Konstantinou Managing Director & Chief Executive Officer Kym Gallagher Chief Financial Officer 4 Capital Raising – Investor Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 5: Table of Contents
Table of Contents 06 Executive Summary ▪ 1H FY20 Performance Highlights ▪ Location Update ▪ Membership ▪ Revenue 13 Equity Raising Overview ▪ Equity Raising ▪ Source and Uses of Funds ▪ Pro-forma Balance Sheet ▪ Offer Timetable 18 Refurbishments during COVID-19 Shutdown Photos 22 Foreign Selling Res
Slide 6: Executive Summary
Executive Summary 6 FY2019 Results Presentation
Slide 7: Executive Summary
Executive Summary ▪ 1H-FY20 results from PCP: ▪ Revenue up 52.7% Pre ▪ EBITDA up 79.8% COVID-19 ▪ NPAT up 121.2% ▪ On track to achieve significant growth in FY20, exceeding 100k members ▪ 10 week closure in ACT market (50% of VVA’s club located) - clubs now open ▪ 10 week closure in QLD market (13%)
Slide 8: 1H FY20 Performance Highlights
1H FY20 Performance Highlights REVENUE EBITDA* NPAT* EBITDA MARGIN* $23.0m $5.61m $2.81m 24.4% PCP 52.7% PCP 79.8% PCP 121.2% PCP 20.7% MEMBERS CLUB m2 LOCATIONS^ UTILISATION 70,886 49,373 60 71.0% Based on 2 members PCP 40,073 PCP 26,381 PCP 25 per square metre * Excluding impacts of AASB16 * Resul
Slide 9: Location Status
Location Status 63% OPERATING 7% 79 OPENING 21 JUNE Locations (June 2020) 9 Capital Raising – Investor Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 10: Locations Reaching more Australians
Locations Reaching more Australians 79 Locations 21 11 Locations under 10+ Locations under New locations negotiation for Open/about negotiation to opening soon lease to Open acquire Our Club Lime and hiit republic Our pipeline of new locations Our pipeline never stops growing Building on our strong
Slide 11: Membership
Membership Members 89,960* 96,171 2,000 Cancellation Win-backs* FY20 Membership Estimates 2,000 New Member Net Growth* ▪ Up 66% from FY19 40,750 ▪ Down 6.5% from Feb-2020 On Suspension± (80% from NSW and VIC) 54,039 44,210 35,631 29,124 Active Members± 26,754 FY2016 FY2017 FY2018 FY2019 FEB2020 FY20
Slide 12: Revenue (pre COVID-19)
Revenue (pre COVID-19) Revenue ($m) Viva Announced the COVID-19 $6.0 completion of the 13 Mandatory Millions FitnFast health clubs shutdown – 23 on 13 February 2020 March 2020 $5.5 $5.0 $4.5 $4.0 $3.5 $3.0 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 12 Capital Raising – Investor P
Slide 13: Equity Raising Overview
Equity Raising Overview 1 FY2019 Results Presentation
Slide 14: Equity Raising Overview
Equity Raising Overview ▪ A fully underwritten Equity Raising of approximately $25.0 million ("Equity Raising" or "Offer") via: − an Institutional Placement of $2.9 million; Offer Size & − a 1 for 6 pro-rata accelerated non-renounceable entitlement offer of approximately $22.1 million, comprising an
Slide 15: Equity Raising Overview (continued)
Equity Raising Overview (continued) ▪ Major shareholders, SHJA Management Pty Ltd (entities associated with Harry Konstantinou and Angelo Konstantinou) and Mera Major Shareholder Vale No. 1 Pty Ltd (entities associated with Mark McConnell) are not participating in the Offer to provide flexibility to
Slide 16: Pro forma Balance Sheet
Pro forma Balance Sheet Balance Sheet ($’000’s) April 2020* Transaction Pro-Forma Assets Cash at Bank and On Hand 9,092 23,900 32,992 Deferred Tax 1,699 303 2,002 Other Assets 228,531 - 228,531 Total Assets 239,322 24,203 263,525 Total Liabilities 195,830 - 195,830 Net Assets 43,492 24,203 67,695 Eq
Slide 17: Offer Timetable
Offer Timetable Event Date Equity Raising announcement and Placement and Institutional Entitlement Offer opens Thursday, 4 June 2020 Placement and Institutional Entitlement Offer closes Thursday, 4 June 2020 Trading in Viva Leisure shares resumes on an ex-entitlement basis Friday, 5 June 2020 Record
Slide 18: COVID-19 Refurbishment Photos
COVID-19 Refurbishment Photos 1 FY2019 Results Presentation
Slide 19: CISAC (ACT)
CISAC (ACT) Before After 19 Capital Raising – Investor Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 20: WODONGA (VIC)
WODONGA (VIC) Before After 20 Capital Raising – Investor Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 21: VICTORIA POINT (QLD)
VICTORIA POINT (QLD) Before After 21 Capital Raising – Investor Presentation NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 22: Foreign Selling Restrictions
Foreign Selling Restrictions 2 FY2019 Results Presentation
Slide 23: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company 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 d
Slide 24: Key Risks
Key Risks 2 FY2019 Results Presentation
Slide 25: Key Risks
Key Risks Introduction Despite these measures, there continues to be considerable uncertainty as to the duration and further impact of This section outlines some of the key risks associated with an investment in Viva Leisure shares, together with risks relating COVID-19, including (but not limited t
Slide 26: Key Risks (continued)
1.6 Increased competition Viva Leisure operates in a sector with established competitors, including a number of other health club providers with Key Risks (continued) a large number of facilities across multiple jurisdictions in Australia. Viva Leisure may face increased competition from these estab
Slide 27: Key Risks (continued)
Key Risks (continued) 2. General risks 2.4 Dividends 2.1 Macroeconomic and Socioeconomic factors There are a range of factors that determine the payment of dividends on Viva Leisure’s shares. These include the The performance of Viva Leisure will continue to be influenced by the overall condition of
Slide 28: Key Risks (continued)
Key Risks (continued) The events which may trigger termination of the Underwriting Agreement include (but are not limited to) the following: (j) there is an application to a governmental agency (including the Takeovers Panel) for an order, declaration (including of unacceptable circumstances) or oth
Slide 29: Key Risks (continued)
Key Risks (continued) (u) any expression of belief, expectation or intention, or statement relating to future matters in the materials of the Offer is 3.2 Dilution or becomes incapable of being met or, in the reasonable opinion of the Lead Manager, unlikely to be met in the Shareholders who do not p