Viva Leisure Ltd. · ASX:VVA
Viva Leisure — H1 2022 Earnings Presentation
33 slides from Viva Leisure's earnings presentation, Feb 25, 2022
Slide 1: 1H FY2022 Results Presentation
1H FY2022 RESULTS PRESENTATION 25 FEBRUARY 2022 1 hiit republic Yamanto, QLD A S X : V VA
Slide 2: Today's agenda
Today's agenda y ome of /aiit
Slide 3: 1H FY2022 Highlights
1H FY2022 HIGHLIGHTS 3 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 4: Operational progress positions Viva for return to growth
Operational progress positions Viva for return to growth FINANCIAL+ OWNED LOCATIONS ALL LOCATIONS $34.0m 132,190 297,211 Revenue – down 5.4% Members – up from 102,908 Members – up from 275,272 4 States in Australia -$3.8m 106,717 m2 3 Countries Worldwide EBITDA Leased Area Reach -$7.2m -$10.4m 132 3
Slide 5: Viva's footprint continues to expand
Viva’s footprint continues to expand GROWTH IN OWNED LOCATIONS +16 (+5%) 325 329 309 8 9 48 293 4 ACT – up from 46 186 185 186 41 191 NSW – up from 30 7 7 8 23 23 7 22 24 58 79 11 17 QLD – up from 11 29 40 2 8 78 89 101 105 68 38 50 Feb-22 Dec-19 Dec-20 Dec-21 Jun-19 Jun-20 Jun-21 IPO 19 VIC – up fr
Slide 6: Financial Results
FINANCIAL RESULTS 6
Slide 7: 1H FY2022 Financials reflect impact of COVID
1H FY2022 Financials reflect impact of COVID ($m) 1H FY2022 1H FY2021 COMMENTS Revenue 33.99 35.95 ▪ Club closures due to COVID Operating Costs (37.76) (30.37) lockdowns led to significant reduction in revenue and EBITDA (3.77) 5.58 EBITDA Depreciation / Amortisation (5.48) (3.83) ▪ Operating Costs
Slide 8: Member base continues to grow
Member base continues to grow MEMBERS BY STATE QLD 13% MEMBERS VIC ACT +4% 12% 38% 309,869 298,376 297,211 275,272 37% NSW MEMBERS BY BRAND 94,196 54,039 35,631 29,124 43% Health Clubs & Other Plus Fitness 56% FY2017 FY2018 FY2019 FY2020 31-Dec-20 30-Jun-21 31-Dec-21 21-Feb-22 2% Hiit Republic 8 1H
Slide 9: Continued member growth in corporate owned locations
Continued member growth in corporate owned locations 144,000 142,996 142,000 3,062 140,000 138,000 136,000 7,744 134,000 132,190 132,000 130,000 128,000 8,392 126,006 126,000 3,070 124,000 862 122,000 0 Members 30 Pre FY2022 Clubs 1H FY2022 1H FY2022 Members 31 2H FY2022 Organic Growth Members 21 Ju
Slide 10: Sound balance sheet supports growth strategy
Sound balance sheet supports growth strategy ($m) 31 Dec 21 30 Jun 21 COMMENTS Cash 16.39 17.29 Receivables and other Current Assets 7.14 6.44 ▪ Capital structure supports growth initiatives Plant and Equipment 46.86 51.71 Right of Use Assets 218.23 204.88 ▪ Proceeds of August 2021 capital raise str
Slide 11: Cashflows reflect short term impact of COVID restrictions
Cashflows reflect short term impact of COVID restrictions COMMENTS ($m) 1H FY2022 1H FY2021 ▪ Acquisition of 14 new sites and rollout of 3 new greenfield Opening cash 17.29 30.10 locations Cashflows from operations 2.62 12.16 ▪ 7 new greenfield locations under construction at 31 Investment in P,P,E
Slide 12: COVID Impacts
COVID Impacts 12
Slide 13: COVID restrictions impacted our ability to open locations
COVID restrictions impacted our ability to open locations COMMENTS Closed 52% Jul to Oct 2021 ▪ Locations were on average closed 52% of the first four 100% 100% months of the half year 72% 62% ▪ Locations were closed 35% of 35% the entire 1H-FY2022 period 21% 0% 0% ▪ Based on a day count per locatio
Slide 14: Revenue profile reflected locations open
Revenue profile reflected locations open 8.0 COMMENTS 7.5 ($m) 7.0 ▪ Revenue fell sharply in first 4 months of 1H FY2022 due to 6.5 inability to open locations 6.0 5.8 ▪ Re-opening commenced in 5.5 November 2021 however with 4.9 5.0 density restrictions which have 5.0 now been removed 4.5 4.1 3.0 3.
Slide 15: Brands & Segment Update
BRANDS & SEGMENT UPDATE As at 25 February 2022 15
Slide 16: Viva's expanding portfolio targets all segments
Viva’s expanding portfolio targets all segments Rebalance Pilates Club Lime Club Lime Hiit Republic Plus Fitness GroundUp Psycle Life & Yoga Aquatics Segment Health Clubs Boutique Health Clubs Boutique Boutique Boutique Aquatics High quality High quality High quality Medium quality facilities, mid L
Slide 17: Health Clubs
Health Clubs ➢ With 85 Club Lime health clubs in Australia, it is the second largest non-franchised health club brand in the country ➢ The largest non-franchised health club brand in Australia operates 91 locations ➢ The Viva Leisure Health Club Portfolio includes 100 locations: ➢ 85 x Club Lime bra
Slide 18: Our new boutique offering
Our new boutique offering ➢ Yoga, Pilates and Barre – 3 studios, 1 location, 1 membership ➢ Clean, white, natural fit-out ➢ First location in Belconnen, ACT opened July 2021, utilising part of the Belconnen leased area ➢ Second location (Yarralumla, ACT) being fitted-out, expected to open late March
Slide 19: Our new franchised boutique offering
Our new franchised boutique offering ➢ Yoga and Pilates ➢ Simple affordable fit-out suitable for franchising ➢ Eight corporate locations acquired in December 2021 ➢ Studio by Club Lime (ACT), converted to Rebalance Pilates and expected to open in March 2022 ➢ Potential second location in the ACT bei
Slide 20: Hiit Republic
➢ All key metrics for Hiit Republic continue to improve in line with original expectations however have slowed due to COVID restrictions on class sizes during 1H-FY2022 ➢ Franchising: ➢ Process has commenced to begin franchising the brand ➢ Successfully employed head of franchising for Hiit Republic
Slide 21: Acquisition Completed
Acquisition Completed 3 February 2021 Acquisition Completed 13 February 2020 Clubs Acquired 6 Clubs Acquired 13 Clubs still trading as Pinnacle 0 Clubs still trading as FNF 2 ➢ Viva Leisure implemented a ‘watch and learn’ approach to ➢ Two NSW locations not yet converted to Club Lime this acquisitio
Slide 22: Anticipation of future bolt on of Plus Fitness
Update: ➢ Completed re-mapping of Australian territories and have commenced process of offering new territories for sale ➢ Back-office app and access control changes in anticipation of future ‘bolt on’ of Plus Fitness membership system to Viva Leisure unique access app ➢ Viva membership ‘hub’ system
Slide 23: Committed to growing the network
COMMITTED TO GROWING THE NETWORK ➢ New equipment suppliers ➢ New branding and image ➢ New look and feel within the clubs ➢ Expanding the reach, size of network ➢ Accessibility, make it easy using Viva access technologies ➢ Repositioning the brand and membership price-point 23 1H FY2022 RESULTS PRESE
Slide 24: Current Branding & Design / New Branding & Design Being Rolled Out
CURRENT BRANDING & DESIGN NEW BRANDING & DESIGN BEING ROLLED OUT 24 1H FY2022 RESULTS PRESENTATION
Slide 25: Trading Update & Outlook
Uf TRADING UP DATE s. OUTLOOK —
Slide 26: Strong pipeline underpins ongoing growth in locations
Strong pipeline underpins ongoing growth in locations 137 Operating Locations 20 New locations secured 16 Under negotiation for lease or to acquire All our brands continue to expand into new markets Focus of growth is with Viva Leisure’s boutique Acquisition opportunities include entry into the bran
Slide 27: Membership growth has reaccelerated
Membership growth has reaccelerated >143,000 ~167,000 >310,000 Viva Members Plus Franchisee Members Total Members Membership up >8,000 members since Membership remains flat with a slight increase over ~2,200 member net growth (excluding any December 2021 December 2021. acquisitions) expected over Fe
Slide 28: Growth expected to return in 2H FY2022
Growth expected to return in 2H FY2022 $54-56m 15-17% H2-FY22 GUIDANCE1 Revenue EBITDA Margin >$10m >20% JUNE 2022 RUN-RATE ESTIMATE1 June 2022 Revenue June 2022 EBITDA Margin 1 Excluding any one-off adjustments and no future COVID lockdowns 28 1H FY2022 RESULTS PRESENTATION
Slide 29: Q&A
Q&A 29
Slide 30: Appendix
APPENDIX 30
Slide 31: Financial Snapshot
Financial Snapshot REVENUE ($m) EBITDA ($m) 83.7 11.9 47.8 6.3 7.3 40.9 6.1 33.1 34.0 5.2 17.9 24.1 20.7 3.3 35.9 5.6 23.0 FY2017 FY2018 FY2019 FY2020 FY2021 HY2022 -3.8 FY2017 FY2018 FY2019 FY2020 FY2021 HY2022 Full Year H1 H2 Full Year H1 H2 31 1H FY2022 RESULTS PRESENTATION
Slide 32: Statutory Reconciliation
STATUTORY RECONCILIATION Underlying & AASB 16 for the Half Year Ended 31 December 2021 1H FY2022 AASB16 1H FY2022 ($m) Statutory Impact (pre AASB16) Revenue 34.0 0.0 34.0 ➢ Rent expense excludes deferred rent of prior periods Expenses 22.8 14.9 37.8 ➢ Removal of amortisation of Right of Use Asset EB
Slide 33: 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