Viva Leisure acquires three World Gym locations and strategic investment in World Gym Australia

Viva Leisure Limited (ASX: VVA) (“Viva Leisure” or “Viva” or “Company”) is pleased to announce the acquisition of a strategic 25% equity stake in World Gym Australia (WGA) and
three corporate locations in Queensland. The acquisition, valued at approximately $16.7 million, represents a significant milestone for Viva as it is the second-largest acquisition in the Company’s history and is fully funded through existing cash reserves, banking facilities and up to $1 million of VVA scrip. The acquisition is expected to deliver substantial financial and strategic benefits, further propelling Viva’s growth trajectory. Subject to completion occurring during Q3 FY2025, Viva is pleased to provide the following guidance:

*Normalised EBITDA, excluding impacts of AASB16

Strategic fit: expanding our network and capabilities
WGA brings a wealth of strategic advantages to Viva’s operations:

• Expansion of corporate network: Acquisition of three World Gym locations (Stafford,
  Coomera, and Underwood) enhances Viva’s presence in Queensland and provides a
  scalable platform for growth.
• Complementary portfolio: WGA’s strong brand and big-box gym format complement
  Viva’s existing operations and expand our reach into new customer demographics.
• Future growth opportunities: Includes a call option to acquire the remaining 75% of WGA (Master Franchisee) within 36 months, as well as a joint venture to develop additional corporate locations.
• Attractive multiple: The blended acquisition multiple at 4.1x EBITDA represents an attractive multiple for a business the size, scale and brand reputation of WGA.
• Synergy upside: The earnings of approximately $4 million are pre-synergies for both the corporate clubs and the Master Franchisee business.

Network membership: A further 169,000 WGA members added to the Viva network will provide further opportunities to scale revenue at margin (payments, hub, vending, digital advertising and supplements) – the entire network will now be over 587,000 members

Harry Konstantinou, CEO and Managing Director of Viva Leisure Limited, said:

“WGA expands Viva’s network to over 450 locations and strengthens our diverse offering while
simultaneously introducing a new market for Viva Pay and other Viva technologies to be deployed
throughout the network. We have successfully demonstrated our ability through the Plus Fitness
acquisition and integration, to assist WGA franchisees with technology and other solutions to
help make their businesses and the network more profitable. We are confident we will be able to
replicate this success with WGA. We look forward to working with the WGA founders Jonathan Davie and Mike Nysten, and the
wider World Gym International team to grow the network in Australia.”

WGA Founders, Mike Nysten and Jonathan Davie said:

“We are incredibly excited to partner with Australia’s premier fitness sector group, Viva Leisure.
World Gym Australia has had tremendous growth and success over the years, and we expect to
exceed all previous milestones with the support and systems now available from Viva. It is a
fantastic opportunity to work with Harry and the Viva team to take World Gym Australia to be the
number one, large format full service offering in Australia.”

Leveraging Viva’s technology for significant growth
A key attractive element of this acquisition is the opportunity to integrate Viva’s innovative
technology across WGA’s network, driving operational efficiencies and new revenue streams.
Highlights include:

• The Hub: member management platform to streamline franchisee operations.
• Viva Pay: expected to handle over $140 million in annual transactions1, reducing costs
  and improving franchisee payment processing.
• Viva Pass: launching later in FY2025, this multi-brand access solution will enhance the
  member experience and provide additional revenue opportunities into new markets,
  especially the corporate market.

1 Anticipated date of commencement early 2027

These integrations align with Viva’s commitment to delivering a seamless, technology-enabled
fitness experience.

Retail and franchise synergies
The WGA acquisition also strengthens Viva’s retail and franchise operations:

• Retail sales expansion: WGA’s annual retail sales of >$26 million (including
  merchandise and supplements) will enhance Viva’s retail options.
• Proven integration expertise: Viva’s track record of integrating acquisitions, such as
  Plus Fitness, highlights its ability to align operations, deploy technology, and extract
  synergies. The WGA acquisition will build on that experience, creating a seamless
  transition and enabling the growth of WGA’s franchise network.

Harry Konstantinou, CEO and Managing Director of Viva Leisure Limited, said:

“Once complete, the WGA acquisition will create the largest and most diversified fitness network
and community in Australia. With a pipeline of over 100 additional corporate and franchisee
network locations already secured, the existing Viva network is expected to expand to over 583
locations, with a membership base across exceeding 587,000 members, underscoring the scale
and reach of our growing fitness community.”

Additional Details:

About World Gym
The iconic World Gym® brand was founded in 1976 by Joe Gold during the glory days of Muscle
Beach in Venice, CA when serious fitness collided with the world of Hollywood celebrities.
Since then, World Gym has evolved into an internationally recognized brand that has captured
the imagination of fitness lovers around the globe. World Gym is dedicated to creating ultimate
workout destinations. With its headquarters located in sunny southern California, World Gym
currently has over 230 franchised locations on 6 continents and in 17 countries, including
Australia, Brazil, Canada, Egypt, India, Mexico, Russia, Taiwan, and the United States.
The World Gym Australia franchise was secured in 2006 with the first location opening in 2008.
Today there are 47 open World Gym locations in Australia with approximately 170,000
members.
For further information, please visit:
▪ https://www.worldgym.com.au/