Viva Leisure Ltd. · ASX:VVA
Viva Leisure — FY2021 Earnings Presentation
34 slides from Viva Leisure's earnings presentation, Aug 17, 2021
Slide 1: Results Presentation FY2021 Full Year
RESULTS PRESENTATION FY2021 FULL YEAR 17 AUGUST 2021 Viva Leisure Limited 1 hiit republic Yamanto, QLD FY2021 FULL YEAR RESULTS PRESENTATIONA S X : V VA
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & 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 c
Slide 3: Presenting Today
PRESENTING TODAY Harry Konstantinou Managing Director & Chief Executive Officer Kym Gallagher Chief Financial Officer 3 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 4: Contents
CONTENTS 4 FY2021 FY2021 FULL FULL YEARRESULTS YEAR RESULTS PRESENTATION PRESENTATION
Slide 5: Word from our CEO
WORD FROM OUR CEO “ Despite a difficult year where all our facilities across Australia had just two months of being open at the same time, I am proud of my team for managing to achieve an increase in all key metrics being Members, Locations, Revenue, EBITDA and NPAT. A 97% increase in EBITDA over th
Slide 6: Performance Highlights
PERFORMANCE HIGHLIGHTS 6 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 7: Performance Summary
PERFORMANCE SUMMARY Up Up 104.8% 97.0% Up Up 45.5% 33.8% Members Locations EBITDA Revenue (Owned Locations) (Owned Locations) Comparison to PCP (June 2020 to June 2021) 7 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 8: Performance Highlights
PERFORMANCE HIGHLIGHTS Consolidated (All Segments) REVENUE ($m) EBITDA ($m)* NPAT * EBITDA MARGIN* $83.7 $11.95 $0.90 14.3% PCP % 104.8% PCP % 97.0% PCP % 4.6% PCP 14.8% Consolidated (Owned locations only) Consolidated (All Segments) CLUB m2 UTILISATION MEMBERS LOCATIONS MEMBERS LOCATIONS 97,103 64.
Slide 9: Operational Achievements
OPERATIONAL ACHIEVEMENTS 115 Locations (June 2021) +14% +56% Locations Locations ➢ Locations increased by 45% during FY2021 building a solid base for FY2022 and beyond (ACT) (NSW) ➢ Percentage of ACT locations now represent 41 47 23 36 approximately 40% of all locations (was >70% at IPO in June 2019
Slide 10: Locations
LOCATIONS ➢ Health Clubs & Other & Hiit Republic are all Corporate owned locations (referenced as “Viva” in the map) ➢ Plus Fitness includes both Corporate and Franchised locations. ➢ Includes New Zealand (3) and India (5) locations ➢ Jun-21 (F) Forecast refers to target set in August 2020 304 304 3
Slide 11: Acquisitions & Greenfields
ACQUISITIONS & GREENFIELDS Locations Plus Fitness Acquisitions Greenfield Health Club Rollouts ➢ Despite the impacts of COVID, Viva Leisure has continued to invest for the future 2 1 (20.0%) 3 (25.0%) (30.0%) ➢ In FY2021: 4 2 (11.1%) ➢ Viva Leisure invested $54.8 million (50.0%) on Acquisitions, Gre
Slide 12: Financial Results
FINANCIAL RESULTS 12 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 13: FY2021 Full Year Results
FY2021 FULL YEAR RESULTS FY2021 FY2020 Profit and Loss ($m) Variance % (Ex AASB-16) (Ex AASB-16) Revenue 83.72 40.89 104.8% ➢ Revenue Growth of 104.8% despite COVID-19 impacts Operating Costs (71.77) (34.82) 106.1% ➢ Expenses include >$1m in legal EBITDA 11.95 6.07 97.0% fees, acquisition and cap ra
Slide 14: FY2021 Revenue Summary ($m)
FY2021 REVENUE SUMMARY ($m) 10 9 +90% ➢ Average Revenue per month ➢ H1: ~$6m 8 ➢ H2: ~$8m 7 ➢ Revenue increased by 90% between July 2020 and June 2021 6 5 4 3 2 1 Average Revenue 0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 14 FY2021 FULL YEAR RESULTS PRESENT
Slide 15: Financial Snapshot
FINANCIAL SNAPSHOT EBITDA Margin impacted by COVID stop/start lockdowns in addition to significant (21) greenfield club rollouts during FY2021. New club rollouts provide trailing contribution (ie: 12 months) from opening as they ramp up. Revenue ($m) EBITDA ($m) EBITDA Margin (%) 83.7 12.0 22.0% 21.
Slide 16: Member Snapshot
MEMBER SNAPSHOT Members by State Viva owned locations only 12% 12% 300,000 298,376 42% June ACT VIC 2021 NSW QLD 250,000 CAGR 172,370 200,000 34% +62% +217% 150,000 Members by Segment 2% 5,501 100,000 94,196 54,039 Plus Fitness (AU/NZ) 120,505 50,000 Health Clubs & Other 40% June 35,631 26,754 29,12
Slide 17: Membership Growth
MEMBERSHIP GROWTH 298,376 5,476 ➢ FY2019 Clubs refers to membership growth for locations opened or acquired in FY2019 or earlier ➢ FY2020 Clubs and FY2021 Clubs refers to membership growth for locations opened in 166,894 the respective years +217% ➢ Acquisitions column represents membership growth f
Slide 18: Revenue Growth ($'000)
REVENUE GROWTH ($’000) 83,718 +84% ➢ FY2019 Clubs refers to revenue growth for 8,467 locations opened or acquired in FY2019 or 75,251 147 earlier 17,025 ➢ FY2020 Clubs and FY2021 Clubs refers to revenue growth for locations opened in the +105% respective years 2,753 6,926 ➢ Acquisitions column repre
Slide 19: Balance Sheet
BALANCE SHEET Balance Sheet ($m) FY2021 FY2020 Cash 17.29 30.10 ➢ Proceeds of Capital raises strengthened Receivables and other Current Assets 6.44 5.62 Balance Sheet Plant and Equipment 51.71 28.65 ➢ Investments in new businesses (organic Right of Use Assets 204.88 176.88 and acquisition) driving p
Slide 20: Cashflow
CASHFLOW Cashflows ($m) FY2021 FY2020 Opening cash 30.10 14.39 ➢ Deployment of capital raises towards Cashflows from operations 25.36 3.04 rollouts and acquisitions ➢ Major acquisitions of Australian Fitness Investment in plant and equipment (27.26) (17.33) Management (Plus Fitness) and Pinnacle Acq
Slide 21: FY2021 Guidance Reconciliation ($m)
FY2021 GUIDANCE RECONCILIATION ($m) Actual After Metric Guidance Actual Addbacks Comments Addbacks ➢ Revenue was above ➢ Viva Leisure provided guidance to the market $0.6 on 25 May 2021 (May/Jun 2021 expectations Revenue $81 to $83 $83.7 lockdown revenue $84.3 notwithstanding three reduction) unexpe
Slide 22: COVID-19
COVID-19 22 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 23: COVID-19 Interruptions
In FY2021, there were only two months which were COVID-19 INTERRUPTIONS considered ‘normal operation’ for Viva Leisure with all locations open. •ACT: No 24/7, COVID marshals required •NSW: Restrictions placed on Gym & border closed •NSW, ACT QLD: Capped attendance and classes •QLD: 3 day snap lockdo
Slide 24: COVID-19 Interruption by Days
COVID-19 INTERRUPTION BY DAYS One unit represents a single location and a single day that the location was either opened or closed. Period: March 2020 to 14 August 2021 ACT 19,872 2,553 11% closed NSW 11,448 2,825 20% closed VIC 3,317 2,301 41% closed QLD 5,098 1,007 16% closed ➢ Stop/Start snap loc
Slide 25: COVID-19 Impacts for FY2022
Period: YTD FY2022 (15 Aug 2021) COVID-19 IMPACTS FOR FY2022 ACT NSW 341 2,064 1,269 144 7% closed 79% closed VIC 391 391 50% closed • NSW: in lockdown, regional locations opened for part of the month Days Open • QLD: 3 day snap lockdown Days Closed July • VIC: 13 day snap lockdown QLD 544 192 26% c
Slide 26: Brands & Segment Update
BRANDS & SEGMENT UPDATE 26 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 27: Health Clubs
Health Clubs ➢ There are 73 Club Lime health clubs in Australia, the second largest non-franchised health club brand in Australia ➢ The largest non-franchised health club brand in Australia operates 90 locations ➢ The Viva Leisure Health Club Portfolio includes 89 locations: ➢ 73 x Club Lime branded
Slide 28: 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 secured. Third location under negotiation ➢ Key Statistics ➢ 40
Slide 29: Hiit Republic
August 2021 August 2020 Average size of club 359 m2 364 m2 Clubs Opened and Operating 22 13 ➢ All key metrics for Hiit Republic continue to improve in line with original Additional locations secured 5 10 expectations Total Members 6,076 3,520 ➢ Average Revenue Per Member calculated as the average re
Slide 30: Acquisition Completed February 2021 (Pinnacle)
Acquisition Completed 3 February 2021 Acquisition Completed 13 February 2020 Clubs Acquired 6 Clubs Acquired 13 Clubs still trading as Pinnacle 6 Clubs still trading as FNF 2 (Aug 2020: 8) ➢ Viva Leisure implemented a ‘watch and learn’ approach to ➢ Two NSW locations not yet converted to Club Lime t
Slide 31: Acquisition Completed 21 August 2020 (Plus Fitness)
Acquisition Completed 21 August 2020 ➢ Viva Leisure has established a wholly owned subsidiary Chain Collective Group (CCG) with a majority independent board Total Members ~175,000 (Franchisee Members) ➢ Board Composition: Clubs Acquired 4 ➢ Peter McGregor (Independent Chair) ➢ Arthur McColl (NED wit
Slide 32: Q&A
Q&A 32 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 33: Appendix: AASB-16 Leases
APPENDIX: AASB-16 LEASES 33 FY2021 FULL YEAR RESULTS PRESENTATION
Slide 34: Statutory Reconciliation
STATUTORY RECONCILIATION Underlying & AASB 16 for the Full Year Ended 30 June 2021 FY21 AASB16 FY21 Profit and Loss ($m) Statutory Impact (pre AASB16) Revenue 83.7 83.7 ➢ Inclusion of rental expenses paid ➢ Removal of amortisation of Right of Expenses 49.6 22.1 71.7 Use Asset EBITDA 34.1 (22.1) 12.0