Hollywood Bowl Group Plc · LSE:BOWL
Hollywood Bowl — FY2016 Earnings Presentation
35 slides from Hollywood Bowl's earnings presentation, Dec 13, 2016
Slide 1: Results Presentation Year Ending 30 September 2016
RESULTS PRESENTATION Year Ending 30 September 2016 Stephen Burns – Chief Executive Officer Laurence Keen – Chief Financial Officer CONFIDENTIAL – December 2016 1
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Slide 3: 2016 Highlights
2016 Highlights Revenue Group Adjusted Refurbishments Growth EBITDA LFL Sales Growth Completed +23.9% +42.6% +6.8% 8 £106.6m £29.4m (FY15: £86.0m) (FY15 : £20.6m) (FY15 : +9.1%) (FY15 : 7) Operational highlights since IPO Bowlplex integration and rebranding programme delivering ahead of expectations
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Slide 5: Management
Management Experienced and motivated management team with track record of success Steve Burns Laurence Keen Chief Executive Officer Chief Financial Officer • Appointed MD in 2012, having joined the company in • Joined in 2014 as Finance Director and Company 2011 and appointed CEO in 2014 Secretary •
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Slide 7: Business overview
Business overview Multiple revenue streams(a) National scale Key stats(b) 54 Centres across the UK Customer engagement Other (c.1%) No. of games played 12.1 M Amusement Web site visits 5.1 M machines Customer database over 5 M (c.24%) contacts Targeted emails sent 100 M+ Bowling Annual revenue from
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Slide 9: Financial Highlights
Financial Highlights Revenue £m Group Adjusted EBITDA £m CAGR 14.9% CAGR 38.8% 106.6 29.4 86.0 78.7 70.2 20.6 14.6 11.0 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Gross Profit % Group Adjusted EBITDA Margin% Growth of 2.5%pts Growth of 11.8%pts 27.5% 83.9% 23.9% 18.6% 82.6% 15.7% 81.9% 81.4% FY13 FY14
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Slide 11: EBITDA Bridge
EBITDA Bridge Part year effect of Bowlplex acquisition - Effect of new drink, £15.6m revenue and food and amusement £3.7m EBITDA terms in LFL estate Revenue growth of 6.8% EBITDA flowthrough 3.7 (0.3) 29.4 at 82.6% 0.8 4.7 (0.2) 20.6 Same Centre GP% Movement Same Centre Revenue Growth Bowlplex EBITD
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Slide 13: Income Statement (i)
Income Statement (i) (£m) 12 months to 12 months to Movement Revenue of £106.6m, growth of 30 September 30 September 23.9% 2016 2015 Same centre LFL up 6.8% Revenue 106.6 86.0 +23.9% Gross Profit% increased due to movement in bowling mix and Gross profit 89.4 71.1 +25.8% Bowlplex revenue mix Gross p
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Slide 15: Income Statement (ii)
Income Statement (ii) (£m) 12 months to 12 months to Movement 30 September 30 September Exceptional costs were fees 2016 2015 associated with the IPO and cost to exit Liverpool lease Adjusted EBITDA 29.4 20.6 +42.6% Finance expenses include Depreciation (9.3) (7.8) £3.5m of arrangement fees Amortisa
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Slide 17: Operating Cash flow (£m)
Group Cash Flow 80.7% 74.8% Operating Cash flow (£m) FY16 FY15 Increase due to Bowlplex and OCF Conversion strategy of improving the overall £m (YE: September) 2016 2015 standards of centres Capex Maintenance Capex(a) 5.8 4.4 Expansionary Capex(b) 3.5 3.7 Expansionary Capex includes all Total Gross
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Slide 19: Group Balance Sheet
Group Balance Sheet (£m) 12 months to 12 months to 30 September 30 September 2016 2015 Net debt of £20.8m (0.71 times PPE 37.3 30.9 EBITDA) Net asset movement due to the Intangibles 79.2 66.2 acquisition of Bowlplex and conversion of investor loan notes to Stock 1.0 0.7 equity pre IPO Trade and othe
Slide 20: Operational Progress
Operational Progress
Slide 21: Customer focused operation
Customer focused operation Creating a reason to return Increasing frequency - LTM Continued improvements in the customer offering, NPS 1.33 58% average during 2016 1.32 Improved F&B offer and amusement machines 1.31 Customer spend per game increased by 6.2% to average 1.30 of £8.63 during the year.
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Slide 23: Refurbishment and Rebrand Programme
Refurbishment and Rebrand Programme Return on Investment 100% 90% Average ROI of 52% during FY 2016 vs a target 80% 33% return 70% 60% 50% 5 centres refurbished during 2016 40% 30% Also 3 Bowlplex rebrands on course to outperform 20% expectation 10% 0% 1 2 3 4 5 6 7 8 Games volumes up 5.8% vs non in
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Slide 25: Bowlplex Integration
Bowlplex Integration Year on year Like for Like growth Transformational acquisition 10.0% 9.0% 11 Bowlplex centres added to the estate 8.0% 7.0% Business integration programme now complete; 6.0% SPG 5.0% LINEAGE All centres migrated onto HWBG CRM, reservations 4.0% and sales systems 3.0% HWBG custom
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Slide 27: Development of New Centres
Development of New Centres Southampton Watermark scheme opening December Southampton Derby* 2016 18,000sq ft. Gross capex £2.4m £2.4m 16 lanes Cashless amusements offer Landlord contribution £1.0m Nil Derby Intu scheme on site, scheduled for opening April Net capex £1.4m £2.4m 2017 22,000sq ft 18 la
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Slide 29: Summary and Outlook
Summary and Outlook Completed listing on London Stock Exchange Strong financial performance of the business across all key metrics Successful execution of growth strategy Transformational acquisition and integration of Bowlplex Refurbishment programme on track Strong pipeline of new centres Ongoing
Slide 30: Appendix
Appendix
Slide 31: Key Strengths
Key Strengths Leading family leisure Multiple revenue streams(a) National scale operator with national 54 Centres across the UK scale Other (c.1%) Amusement Machines Impressive financial (c.24%) returns Bowling (c.48%) Industry leading growth F&B (c.28%) Experienced and motivated leadership team Str
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Slide 33: Board of Directors and Senior Management
Board of Directors and Senior Management Board of Directors Peter Boddy – Non-Executive Chairman Nick Backhouse – Senior Independent Non-Executive Director • Chairman of Xercise4Less and the Harley Medical Group • Joined the Group in 2016 • CEO or MD of a number of successful private equity backed c
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Slide 35: Adjusted Underlying Earnings per Share
Adjusted Underlying Earnings per Share (£000) 12 months to 12 months to 30 September 30 September 2016 2015 Profit before taxation 2,574 4,765 Exceptional costs within administrative expenses 5,163 (722) Exceptional costs within finance expenses 2,995 - Shareholder interest 6,886 5,646 Adjusted unde