Viva Leisure Ltd. · ASX:VVA
Viva Leisure — Merger or Acquisition (December 2024)
27 slides from Viva Leisure's merger presentation, Dec 10, 2024
Slide 1: Strategic Investment Investor Presentation
STRATEGIC INVESTMENT INVESTOR PRESENTATION 10 DECEMBER 2024 ASX | VVA
Slide 2: Viva Today: Not Just a Gym
VIVA TODAY…. NOT JUST A GYM… CONNECTING FRANCHISING, PAYMENTS, TECHNOLOGY SOLUTIONS AND LEVERAGING INTO OTHER REVENUE AT SCALE GYMS TECHNOLOGY 200 CORPORATE 1 SOFTWARE (THE HUB) 250,000+ MEMBERS 1 HARDWARE (ACCESS CONTROL) 25 MILLION VISITS VIVA PASS ANNUALLY APPS FRANCHISES 2 3 OTHER PAYMENTS 4 5 C
Slide 3: Contents
CONTENTS EXECUTIVE SUMMARY 4 Q4-FY2025 FORECAST RUN RATES 7 STRATEGIC RATIONALE 9 TECHNOLOGY 17 OVERVIEW WORLD GYM 19 TRANSACTION SUMMARY 23
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: Executive Summary
EXECUTIVE SUMMARY Viva Leisure (Viva) has entered a binding agreement for a strategic investment of 25% in World Gym Australia (WGA) together with the 100% acquisition of three (3) World Gym locations, and the establishment of a joint venture with the founders for the roll-out of more corporate owne
Slide 6: Highlights
HIGHLIGHTS Significant synergy opportunities, and learning opportunities from WGA is a significant player in the big-box fitness the WGA franchise network generating over $26 million annually space within Australia, operating under licence of the with in-club merchandise, supplements and other retai
Slide 7: Q4-FY2025 Forecast Run Rates
Q4-FY2025 FORECAST RUN RATES
Slide 8: Q4-FY2025 Forecast Run Rates
Q4-FY2025 FORECAST RUN RATES Based on information currently available and barring any unforeseen events. Forecasts are subject to completion of World Gym acquisition in Q3-FY2025. Revenue Forecast Q4-FY2025 Q4-FY2025 Annualised FY2024 Actual Revenue >$56m >$224m $163.6m EBITDA* Forecast Q4-FY2025 Q4
Slide 9: Strategic Rationale
STRATEGIC RATIONALE
Slide 10: Building Australia's Largest and Most Diversified Fitness Network
464 OPEN LOCATIONS BUILDING AUSTRALIA’S LARGEST AND MOST 20 SECURED CORPORATE LOCATIONS DIVERSIFIED FITNESS NETWORK AND COMMUNITY 99 SECURED FRANCHISE LOCATIONS 583 Corporate & Network Locations Open or Opening Soon 587,000 Corporate & Network Members today ASX | VVA STRATEGIC INVESTMENT - WORLD GYM
Slide 11: Strategic Rationale: Investing into Future Earnings
STRATEGIC RATIONALE INVESTING INTO FUTURE EARNINGS IMMEDIATE FUTURE Locations Highly complementary Viva Pay The Hub Supports plan to grow into new Highly complementary fit in Contracted arrangement for the The Hub to be implemented as territories and markets, terms of geography and introduction of V
Slide 12: Network Member Base Continues to Grow
NETWORK MEMBER BASE CONTINUES TO GROW INCLUDES CORPORATE, PLUS FITNESS, BOUTIQUE FITNESS STUDIOS +57.8% AND WORLD GYM AUSTRALIA MEMBERS 587 10 Viva’s network now services over 3% of the Australian population 169 (15-74 years of age) +7.5% +8.1% 372 +7.4% 346 345 336 320 298 297 275 408 31-Dec-20 30-
Slide 13: Covering Australia: The Viva Network
COVERING AUSTRALIA THE VIVA NETWORK 464 Corporate & Network Locations Viva Plus Fitness BFS WGA State Total Corporate Franchisees Franchisees Franchisees 5 ACT 51 - 1 - 52 72 NSW 54 133 24 15 226 VIC 32 6 3 1 42 59 QLD 33 6 11 22 72 8 NT 4 - - 1 5 226 SA - 5 3 - 8 (NSW) WA 23 16 12 8 59 52 Total 197
Slide 14: Brands and Markets
BRANDS AND MARKETS VIVA NOW A SIGNIFICANT PLAYER IN ALL MARKET SEGMENTS Australian locations only As at 7 December 2024 Management opinion on target segments and price point ranges $80 $70 F45 THE FITNESS INDUSTRY $60 WHERE ONE SIZE DOES BFT BFS $50 NOT FIT ALL GroundUp Weekly Rate FitStop Rebalance
Slide 15: Competitive Landscape
COMPETITIVE LANDSCAPE SIGNIFICANT OPERATOR IN THE MARKET 581 Viva Leisure now owns and operates the second-largest network in Australia (464) and with a total of 197 corporate locations this also positions 464 the company as the nation’s second-largest owner in the industry. 35 129 Diagram represent
Slide 16: The Viva Franchise Network
THE VIVA FRANCHISE NETWORK A GROWING NETWORK FOR PAYMENTS, SOFTWARE, ACCESS CONTROL, DIGITAL SIGNAGE AND MORE Additional Sold Brand Country Open Locations Total The Franchise Advantage Locations ▪ Low risk, high reward Plus Fitness1 Australia 199 27 226 ▪ Low capital investment required New Zealand
Slide 17: Technology: Viva Labs
TECHNOLOGY VIVA LABS
Slide 18: Technology: Solutions That Matter
TECHNOLOGY SOLUTIONS THAT MATTER The Hub will be deployed across the World Gym network, providing Franchisee benefits, and licencing fees to Viva Viva Pay will be deployed to provide a better experience and reduced processing fees for Franchisees, adding >$114 million in direct debit processing tran
Slide 19: Overview
OVERVIEW
Slide 20: Founder Joe Gold quote
“ WITH SOME BASIC SKILLS, AMBITION AND PERSISTENCE, THERE IS LITTLE LIMIT TO WHAT YOU CAN ACHIEVE, AND BY TRYING YOU CAN “ OFTEN SURPRISE YOURSELF. FOUNDER JOE GOLD ASX | VVA STRATEGIC INVESTMENT - WORLD GYM AUSTRALIA 20 20
Slide 21: Welcome to World Gym
WELCOME TO WORLD GYM The iconic World Gym® brand was founded in 1976 by Joe Gold during the glory days of Muscle Beach in Venice, CA when serious fitness collided with the world of Hollywood celebrities. Since then, World Gym has evolved into an internationally recognized brand that has captured the
Slide 22: World Gym: Building Legends Since 1976
THE WGA STORY WORLD GYM: BUILDING LEGENDS SINCE 1976 10 20 30 47 2006 2008 2015 2017 2020 2022 2024 2024 World Gym First World Gym in 10th World Gym 20th World Gym 30th World Gym 100,000 47 World Gym ~170,000 Australia Australia opens in Australia in Australia in Australia Members milestone location
Slide 23: Transaction Summary
TRANSACTION SUMMARY
Slide 24: Transaction Summary
TRANSACTION SUMMARY ACQUISITION STRENGTHENS AND DIVERSIFIES VIVA’S POSITION IN THE BIG-BOX SEGMENT Viva Leisure (Viva) has entered into a binding agreement for a strategic investment in World Gym Australia (WGA) ▪ WGA is the Master Franchisee in Australia for the World Gym franchise Transaction Over
Slide 25: Transaction Summary (Continued)
TRANSACTION SUMMARY (CONTINUED..) ACQUISITION STRENGTHENS AND DIVERSIFIES VIVA’S POSITION IN THE BIG-BOX SEGMENT ▪ The investment is fully funded from existing cash reserves, available bank facilities, and $1 million of VVA scrip Funding ▪ The acquisition is Viva’s second largest acquisition after t
Slide 26: World Gym Australia Summary
WORLD GYM AUSTRALIA SUMMARY ONE OF THE WORLDS MOST ICONIC FITNESS BRANDS ▪ WGA was granted its licence from World Gym International LLC in 2006 and opened its first location in 2008 ▪ WGA as master franchisor currently has 47 locations open in Australia Overview of WGA ▪ There are a further 13 sold
Slide 27: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Future performance Important information This presentation may contain certain ‘forward-looking statements’. Forward-looking statements include those The information in this presentation is general in nature and does not purport to be complete. It has been prepared by