Viva Leisure Ltd. · ASX:VVA
Viva Leisure — H1 FY2020 Earnings Presentation
36 slides from Viva Leisure's earnings presentation, Feb 25, 2020
Slide 1: 1H FY20 Results
For personal use only 1 H F Y 2 0 R E S U LT S 25 February 2020 1 FY2019 Results Presentation
Slide 2: 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
Slide 3: Presenting Today
Presenting Today For personal use only Harry Konstantinou Managing Director & Chief Executive Officer Kym Gallagher Chief Financial Officer 3 1H FY20 Results Presentation
Slide 4: Table of Contents
Table of Contents 05 Performance Highlights ▪ 1H FY20 Performance Highlights For personal use only ▪ Operational Achievements 08 Financial Results ▪ 1H FY20 Results Case Studies 15 ▪ hiit republic ▪ Healthworks acquisition ▪ FitnFast acquisition Business Overview and Outlook 20 ▪ The Viva Leisure Ec
Slide 5: Performance Highlights
For personal use only Performance Highlights 5 FY2019 Results Presentation
Slide 6: 1H FY20 Performance Highlights
1H FY20 Performance Highlights For personal use only REVENUE EBITDA* NPAT* EBITDA MARGIN* $23.0m $5.61m $2.81m 24.4% PCP 52.7% PCP 79.8% PCP 121.2% PCP 20.7% MEMBERS CLUB m2 LOCATIONS^ UTILISATION 70,886 49,373 60 71.0% Based on 2 members PCP 40,073 PCP 26,381 PCP 25 per square metre * Excluding imp
Slide 7: Operational Achievements
Operational Achievements 75 Locations For personal use only (Feb 2020) Locations Locations Locations Locations (ACT) (NSW) (QLD) (VIC) 29 37 10 23 0 10 1 5 June 2019 Feb 2020 June 2019 Feb 2020 June 2019 Feb 2020 June 2019 Feb 2020 Monthly Recurring Monthly Member Membership Split Instructor Revenue
Slide 8: Financial Results
For personal use only Financial Results 8 FY2019 Results Presentation
Slide 9: 1H FY20 Results
1H FY20 Results For personal use only Profit and Loss ($m) HY2020 HY2019* Variance % Comments Revenue 22.99 15.05 52.7% • Strong growth over PCP on all lines with club openings, Operating Costs (17.38) (11.93) 45.6% acquisitions and organic growth EBITDA 5.61 3.12 79.8% • EBITDA includes impact of o
Slide 10: Financial Snapshot
Financial Snapshot For personal use only Revenue ($m) EBITDA ($m) EBITDA 58.7 14.2 margin(%) 35.7F 8.6F 24.8% 24.4% 8.2 21.6% 33.1 5.1 18.0 15.8% 5.6 5.2 24.1 23.0 20.7 18.4 3.3 3.1 10.0% 15.1 1.8 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 HY202
Slide 11: Member Snapshot
Member Snapshot Members (31 Dec 2019) EBITDA per member ($ p.a.) For personal use only 70,886 $183 $187 54,039 $161 $118 35,631 26,754 29,124 $71 FY2016 FY2017 FY2018 FY2019 HY2020 FY2016 FY2017 FY2018 FY2019 HY2020 EBITDA per member based on average member number for the year. HY2020 based on Decem
Slide 12: Member Growth
Member Growth For personal use only 12 1H FY20 Results Presentation
Slide 13: Balance Sheet
Balance Sheet For personal use only Balance Sheet ($m) HY2020 FY2019* Highlights Cash 27.10 14.39 • Strong closing cash balance after successful capital raise Receivables and other CA's 1.89 0.70 • Strong investment in new clubs and Plant and Equipment 25.98 19.20 acquisitions Intangibles 9.85 6.56
Slide 14: Cashflow
Cashflow For personal use only Cashflows ($m) HY2020 HY2019* Highlights • Strong investment in P&E for rollouts Opening cash 14.39 0.51 • Acquisition of Healthworks, Wodonga and Cashflows from operations 4.40 3.08 Mitchell Investment in plant and equipment (7.08) (1.65) • Proceeds of capital raise l
Slide 15: Case Studies
For personal use only Case Studies 1 FY2019 Results Presentation
Slide 16: Case Study Members vs Clubs
Case Study Members –v- Clubs 3,000 10 2,500 8 For personal use only 2,000 6 1,500 4 1,000 500 2 0 0 Average size of club 332 m2 Clubs Opened and Operating 9 (Feb 2020) Members Clubs Additional Clubs Opening Soon 10 Total Members 2,483 Revenue Average members per club 276 300,000 Average EBITDA margi
Slide 17: Case Study Progress since acquisition
Case Study Progress since acquisition ▪ Equipment ordered and arriving March-May 2020 For personal use only ▪ Fit-out upgrade plans finalised for 2 locations (Victoria Point and Redcliffe) with work commencing late February 2020 ▪ Club synergies have been implemented creating a wage saving of ~$200k
Slide 18: Case Study Before and After
Case Study Before After For personal use only West End Deagon 18 1H FY20 Results Presentation
Slide 19: Case Study Progress since acquisition
Case Study Progress since acquisition For personal use only ▪ Equipment ordered and arriving April-June 2020 ▪ Fit-out upgrade plans finalised for 2 locations (Rouse Hill and Wetherill Park) with work commencing March 2020 Acquisition Completed 13 February 2020 ▪ Head office synergies have commenced
Slide 20: Business Overview and Outlook
For personal use only Business Overview and Outlook 2 FY2019 Results Presentation
Slide 21: The Viva Leisure Ecosystem
The Viva Leisure Ecosystem For personal use only 96,000 members 4 States of Australia Unique Value Proposition One Membership Paying $15-$40 ▪ ACT ▪ Multiple brands Current per week ▪ New South Wales ▪ Multiple fitness options ▪ Club Lime ▪ Victoria ▪ Multiple opportunities ▪ hiit republic Growing ▪
Slide 22: Locations Reaching more Australians
Locations Reaching more Australians For personal use only 75 21 12 Locations under 7 Locations under Operating New locations negotiation for locations opening soon negotiation to lease acquire Our Club Lime and hiit republic Our pipeline of new locations Our pipeline never stops growing Building on
Slide 23: Our new boutique offering GroundUp
Our new boutique offering GroundUp ▪ Yoga, Pilates and Barre – 3 studios, 1 location, 1 membership ▪ Clean, white, natural fit-out For personal use only ▪ Fixed fortnightly fee, including all 3 studios, and a Club Lime upgrade option for less than the cost of competing boutiques ▪ Locations now bein
Slide 24: Acquisition timeline
12 37 Acquisition timeline For personal use only Acquisitions Locations 4 clubs 1 club 1 club 1 club 8 clubs 13 clubs 2020 & 2010 2018 2018 2019 2019 2020 beyond 1 club 1 club 3 clubs 1 club 2 clubs 1 club 2012 2018 2019 2019 2019 2020 Various logos and images above are not the property of Viva Leis
Slide 25: Fitness as a Service (FaaS)
Fitness as a Service (FaaS) our data is what makes us different The Viva Fitness as a Service (FaaS) model Viva Leisure’s Model Traditional Model For personal use only Pricing Affordable, no contract, no joining fee Expensive locked-in pricing model with joining fees Paper based, completed in person
Slide 26: Outlook for FY2020
Outlook for FY2020 For personal use only Viva Leisure confirms it is on track to meet the guidance set out in the December 2019 Investor presentation REVENUE EBITDA LOCATIONS^ MEMBERS $58.7m $14.2m 82 106,500 Management looks forward to continuing to update the market in relation to new club opening
Slide 27: AASB 16: Leases
For personal use only AASB 16 : LEASES 2 FY2019 Results Presentation
Slide 28: AASB Leases
AASB 16 Leases Impact of AASB 16 Leases at 31 December 2019 For personal use only ▪ EBITDA impact – increase of $4.7m Profit & Loss ▪ NPAT impact – reduction of $1.6m ▪ Recognition of Right of Use Asset and Lease Liability ▪ Total Assets impact – increase of $147.7m Balance Sheet ▪ Total Liabilities
Slide 29: Statutory Reconciliation
Statutory Reconciliation Underlying & AASB 16 for the Half Year Ended 31 December 2019 For personal use only HY20 AASB16 HY20 Profit and Loss ($m) Statutory Impact (pre AASB16) Revenue 22.99 0.00 22.99 EBITDA 10.34 (4.73) 5.61 Depreciation and Amortisation 5.90 (4.36) 1.54 EBIT 4.44 (0.37) 4.07 Fina
Slide 30: Statutory Reconciliation
Statutory Reconciliation Underlying & AASB 16 as at 31 December 2019 For personal use only HY20 AASB16 HY20 Balance Sheet ($m) Statutory Impact (pre AASB16) Cash 27.10 27.10 Receivables and other CA's 1.89 1.89 Plant and Equipment 16.27 9.71 25.98 Right of Use Asset 122.60 (122.60) - Intangibles 9.8
Slide 31: Statutory Reconciliation
Statutory Reconciliation Underlying & AASB 16 for the Half Year Ended 31 December 2019 For personal use only HY20 AASB16 HY20 Cashflows ($m) Statutory Impact (pre AASB16) Opening cash 14.39 14.39 Cashflows from operations^ 9.13 (4.73) 4.40 Investment in plant and equipment (7.08) (7.08) Acquisition
Slide 32: The Viva difference
For personal use only 3 FY2019 Results Presentation The Viva difference
Slide 33: The Viva business health is the new wealth
The Viva business health is the new wealth ▪ Viva Leisure Limited (Viva Leisure) operates in the health and leisure Our Brands For personal use only industry in Australia, originally commencing operations in January 2004 with one facility and now operating 75 different business sites, the majority o
Slide 34: Scalable business model
Scalable business model fitness is an essential part of life Viva Leisure’s hub and spoke model New concepts, new USP’s For personal use only ▪ Viva Leisure operates what it calls a ‘hub and spoke’ model with larger (big box) health clubs being supported by smaller (standard, express As Viva Leisure
Slide 35: Investment highlights
Investment highlights not all health clubs are built the same Attractive member Technology focused Strong cash flow from Growth opportunity High quality facilities proposition operator model For personal use only Highly fragmented market with High levels of member Data driven site selection Technolo
Slide 36: Thank you!
For personal use only 3 FY2019 Results Presentation Thank you!