Viva Leisure Ltd. · ASX:VVA
Viva Leisure — Investor Presentation (July 2020)
24 slides from Viva Leisure's investor presentation, Jul 22, 2020
Slide 1: Acquisition of Plus Fitness (Master Franchisor)
ACQUISITION OF PLUS FITNESS 1 (MASTER FR ANCHISOR) 22 July 2020
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Important Notice and Disclaimer This presentation has been prepared by Viva Leisure Limited ("Viva Leisure") in relation to the acquisition by Viva Leisure of Australian Past performance information given in this presentation is given for illustrative purposes only an
Slide 3: Contents
Contents 5. Executive Summary 7. Transaction Overview 11. Better Together 14. Competitor Overview 17. Financial Metrics 20. Acquisition Priorities 3 ACQUISITION OF AUSTRALIAN FITNESS MANAGEMENT – MASTER FRANCHISOR OF PLUS FITNESS
Slide 4: Word from our CEO
Word from our CEO “ The acquisition of the Plus Fitness brand, systems and Master Franchisor, including the Master Franchise licence for New Zealand, and a first right of refusal on the existing 197 locations makes this the most exciting ” and largest opportunity in our history. 4 ACQUISITION OF AUS
Slide 5: Executive Summary
Executive Summary 5
Slide 6: Executive Summary
Executive Summary ▪ Viva Leisure Limited has agreed to acquire all the issued share capital in Australian Fitness Management Pty Ltd (“AFM”) ▪ AFM is the Master Franchisor of the Plus Fitness franchise of health clubs ▪ The Plus Fitness network operates 197 locations across Australia (190), New Zeal
Slide 7: Transaction Overview
Transaction Overview 7
Slide 8: Overview of Australian Fitness Management
Overview of Australian Fitness Management1 ~200 franchisee Owns first right of Franchise Network ~175,000 locations refusal Revenue2 Franchise Network AU (190), NZ (3), INDIA (4) to acquire franchisees, sell Members2 territories or open a new location within a territory ~25 Employees Established in
Slide 9: Overview of Plus Fitness Locations
Overview of Plus Fitness Locations 9 ACQUISITION OF AUSTRALIAN FITNESS MANAGEMENT – MASTER FRANCHISOR OF PLUS FITNESS
Slide 10: Plus Fitness New Club Openings
Plus Fitness New Club Openings 35 Clubs Opened Average 30 25 20 18 36 34 15 22 21 10 20 20 18 14 12 5 10 5 3 0 Pre 2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 * FY2021 (Est) Source: Management estimates and public data; FY2020 rollout was COVID-19 interrupted 10 ACQUIS
Slide 11: Better Together
“ Viva Leisure can now leverage a diversified network of Corporate, Franchised and Franchised Corporate owned ” clubs Harry Konstantinou, Managing Director & CEO Better Together 11
Slide 12: Club History (Viva Leisure with Plus Fitness)
Club History (Viva Leisure with Plus Fitness) 350 Plus Fitness 313 Viva Leisure 300 276 250 227 197 215 200 173 197 150 187 175 100 154 50 98 79 40 19 22 0 FY2017 FY2018 FY2019 FY2020 * FY2021 (Est) Source: Management estimates and public data; FY2020 rollout was COVID-19 interrupted 12 ACQUISITION
Slide 13: Summary
Summary Combined Group Health Clubs, Boutique Functional Product Offering Fitness, Boutique Cycling Studios, Franchised Health Clubs Aquatic Facilities, Swim School Boutique, Express 24/7, Segment Express 24/7 All four segment types Standard and Big Box Years of Operation Commenced January 2004 (16
Slide 14: Competitor Overview
“ Our data tells us that in every market, proximity, location and accessibility matter. With an increased network and ” reach, Viva Leisure will grow its significant market share. Harry Konstantinou, Managing Director & CEO Competitor Overview 1
Slide 15: Clubs (Owned and Franchised) by Brand
Clubs (Owned and Franchised) by Brand 750 Australia 700 (Clubs) 650 NZ 600 (Clubs) 550 74 48 Members 500 ('000) 450 54 400 350 720 300 521 517 550 3 250 56 200 420 150 271 270 220 250 100 50 120 0 Source: Management estimates and public data, Australia and New Zealand locations only 15 ACQUISITION O
Slide 16: Competitor Review
Competitor Review Source: Management estimates and public data of franchised health club groups 16 ACQUISITION OF AUSTRALIAN FITNESS MANAGEMENT – MASTER FRANCHISOR OF PLUS FITNESS
Slide 17: Financial Metrics
“ This transaction buys Viva Leisure a pipeline of future acquisitions, while diversifying our revenue stream and providing another option for roll-outs ” Financial Metrics Kym Gallagher, CFO 1
Slide 18: Financial Metrics of Australian Fitness Management
Financial Metrics of Australian Fitness Management FY20201 Notes ($ millions) FY20191 FY20201 (pro forma) ▪ Based on Management P&L’s and Viva’s Income (Normalised) 11.8 11.4 14.4 assessment of Normalised Maintainable EBITDA Gross Profit (Normalised) 5.2 5.1 5.8 ▪ FY 2020 results based on results to
Slide 19: Revenue & Expenses
Revenue & Expenses Plus Shop Sales (Merchandise), Revenue Expenses 10% Professional Administration / Fees, 4% Other, 17% Franchise Set Up Fees, 30% Subscriptions, 2% Plus Sales (Equipment), 24% Travel, 4% Communications, Employees, 58% 7% Franchise Fees, 17% Rent, 8% Other, 19% Five distinct maintai
Slide 20: Acquisition Priorities
Acquisition Priorities 2
Slide 21: Opportunities for Growth
Opportunities for Growth Immediate Priorities (<12 months) Use the available runway and identified territories to roll-out new franchisee locations, both Corporate and non- Corporate Acquisition and conversion of existing franchisee locations who wish to exit Accelerate roll-out in New Zealand marke
Slide 22: Opportunities for Growth
Opportunities for Growth Ongoing Initiatives (>12 months) Expand franchisee and Corporate locations Review additional opportunities to franchise any existing Viva Leisure brands, or new franchisee opportunities Review market to see if any additional Master Franchisor opportunities exist Leverage gro
Slide 23: 2
2
Slide 24: — Vv »' » = / ey * : , é - Ag -
— Vv »' » = / ey * : , é - Ag - £ no. 8 ¢ E g ee ys “\ *