Leejam Sports Co. · TADAWUL:1830
Leejam Sports — H1 2020 Earnings Presentation
29 slides from Leejam Sports's earnings presentation, 2020
Slide 1: Fit for Growth Investor Presentation H1 2020
FIT FOR GROWTH Investor Presentation H1 2020
Slide 2: Disclaimer
Leejam Sports Company makes no representation or warranty of any kind, express, implied or statutory regarding this document or the materials and information contained or referred to on each page associated with this document. The material and information contained on this document is provided for g
Slide 3: Overview COVID-19 Executive
1 2 3 4 5 6 Executive Financial Outlook Overview COVID-19 Q&A Summary Performance FY 2020
Slide 4: 1. Overview
1. Overview
Slide 5: Vision, Mission, and Values
Vision, Mission, and Values Vision Mission Values Customer service excellence Responsibility Integrity Values Customer service excellence Innovation
Slide 6: Leejam Strategic Pillars
Leejam Strategic Pillars Unrivalled Focusing on our Class Customer Growth Quality People Leading Tech Experience Increase the rate of expansion of our Achieve recognition for Become the ‘Employer Build systems that guarantee Deliver a best-in-class clubs through traditional clubs, our exceptional me
Slide 7: Business Model
Business Model VISION AND MISSION VISION THE VALUE WE To be the people’s favorite and most accessible wellness club. CREATE MISSION To steer society towards a healthy lifestyle SERVICES & INPUTS and encourage people to exercise daily FEATURES TRAINING MEMBERSHIP GROWTH AND CUSTOMER FINANCE • Cardio
Slide 8: Financial highlights
Largest Fitness center operator in the Region & a Proud Saudi Brand 29M VISITORS Financial highlights in 2019 Revenue (IN SAR) Gross Profit (IN SAR) Turbo HIIT GX Studio Program was launched in 2019 220M (13)M 32 H1 2020 436M H1 2020 156M Female Centers as of, June 2020 132 With H1 2019 EBITDA H1 20
Slide 9: Business Review
Business Review Corporate Wellness 3 1 Clubs 6 Clubs 51 25 Clubs 3 40 Clubs 2 Clubs 52 Clubs Clubs Clubs
Slide 10: 2. COVID-19
2. COVID-19
Slide 11: Post COVID-19 Cost Saving, Footfall and Cash
Post COVID-19 Cost Saving COVID-19 Re-opening Footfall Post Re-opening Cash Related Cost $ • Submitted letter to Land • Leejam is providing high • Holding to adequate cash of • The first Gym Chain to open Attendance Recovery standards of Hygiene at its SR 177M at end of June- Loads to waive rental d
Slide 12: 3. Executive Summary
3. Executive Summary
Slide 13: Key Metrics
Key Metrics Gross Members Revenue Income EBITDA Net Income Count 24M SAR (63)M SAR (25)M SAR (91)M SAR 243K Q2 2020 Active Member Q2 2020 Q2 2020 Q2 2020 (178%) June 2020 (89%) (122%) (280%) (0.4%) 219M SAR 82M SAR 114M SAR 50M SAR 244K Active Member Q2 2019 Q2 2019 Q2 2019 Q2 2019 June 2019
Slide 14: Market Leader with Strong Scale Advantage
Market Leader with Strong Scale Advantage, Fitness Centres Evolution Strong geographical footprint with presence in 28 cities Geographic Footprint (as of 30 June 2020) 140 Arar (1) (128) ● ● Sakakah Hafr (1) Al Batin (4) ● Tabuk ● (1) (3) Ha’il ● (1) ● Buraydah ● Jubail Yanbu Saihat ● (4) (2) Madina
Slide 15: 4. Financial Performance
4. Financial Performance
Slide 16: Revenue and Net Income – H1 2020
Revenue and Net Income – H1 2020 Revenue # of Fitness Centres 134 132 Key Messages: - new Male Centres 6 0 4 2 ❖CY Revenue was 50% lower vs. LY, mainly due to: - new & Converted Female Centres ▪ Impact of covid-19 pandemic approx. SR 257M. ▪ Excluding the impact of covid-19 revenue of H1 2020 would
Slide 17: Revenue and Net Income – Q2 2020
Revenue and Net Income – Q2 2020 Revenue Ave. Revenue/Club Key Messages: ❖CY Revenue was 89% lower vs. LY, mainly due to: ▪ Impact of covid-19 pandemic approx. SR 213M. ▪ Excluding the impact of covid-19 revenue of Q2 2020 would have been SR 237 with a growth of 8% mainly driven by: • Growth of LFL
Slide 18: QoQ Growth (SAR million)
QoQ Growth (SAR million) Revenue # of Fitness Centres 117 112 115 126 134 132 133 132 133 132 Key Messages: - new Male Centres 2 0 0 2 4 1 0 0 0 0 Excluding impact of covid-19 pandemic, Q2 2020 - new & Converted 1 5 2 10 3 1 0 1 2 0 Female Centres 300 2.5 revenue would have a growth of 8% vs. Q2 201
Slide 19: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, H1 2020) (%, H1 2020) 3, 1% 2, 1% 2, 1% (SAR million) (SAR million) 20, 9% 3, 1% 55, 28% 21, 10% 88, 45% 5, 3% 177, 80% 40, 20% Individual Membership Corporate PT Rental Male FT Male Pro Male Plus Junior Ladies FT Ladies Pro Ladies Plus
Slide 20: H1 2020 P&L
H1 2020 P&L Key Messages: SR M H1 19 H1 20 ∆ ∆% Revenue 436.3 219.9 (216.5) (49.61%) ❖Revenue decline of SR 216M (50%) mainly due to closure of all Cost of revenue 279.7 232.7 (47.0) (16.81%) clubs since 16th Mar until June21 2020 due to covid-19 pandemic. Gross profit 156.6 (12.8) (169.4) (108.18%)
Slide 21: Q2 2020 P&L
Q2 2020 P&L Key Messages: SR M Q2 19 Q2 20 ∆ ∆% Revenue 219.0 23.8 (195.3) (89.14%) ❖Revenue decline of SR 195M (89%) mainly due to closure of all clubs until 21 June 2020 due to covid-19 pandemic. Cost of revenue 137.5 87.0 (50.5) (36.71%) Gross profit 81.5 (63.3) (144.8) (177.59%) ❖Cost of revenue
Slide 22: COGS & SG&A
COGS & SG&A COGS 300 2.1 2.1 2.5 Key Messages: (SAR million) 250 1.7 2.0 200 ❖17% decrease in average COGS / center is mainly driven by: 1.5 ▪ Lower salaries and benefits 32% (lower allowances and 150 commissions), decrease in utilities, cleaning expenses, consumables and security, partly offset by:
Slide 23: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) 700 30 600 18 25 Key Messages: 500 16 ❖ YOY Increase in loans to support center expansion. ❖ Overall bank loan increased by SR 79M, however Cash 20 400 increased by SR 152M ❖ Approximate 50-60% split by managing the portfolio between 15
Slide 24: Cash Generation & Returns
Cash Generation & Returns Cash Flow From Operations (SAR million) Cash flow / EBITDA 35% 102% 141% 243 278 212 218 38 66 H1 2018 H1 2019 H1 2020 Cash Flow from Operating Activites Deferred Revenue Dividend Declared and Pay-out (SAR million) Dividend Ratio 60% 60% - 160 184 96 110 0 -85 H1 2018 H1 20
Slide 25: H1 2020 Male & Female Segments
H1 2020 Male & Female Segments Female Centers continue to make Material Contribution in H1 2020 Female Centers Openings CY Female centers Ramp-up Evolution Revenue per centre (SAR million)
Slide 26: Male vs. Female Centres Performance
Male vs. Female Centres Performance Based on Q2 2020 performance Revenue and Gross Profit per centre (SAR million) Gross Margin, average (1.8%) (7.3%) 1.8 1.6 (0.1) (0.03) Ave. Revenue Ave. GP Male Female
Slide 27: 5. Outlook FY 2020
5. Outlook FY 2020
Slide 28: Outlook FY 2020
Outlook FY 2020 No. of centres Growth Tentative Guidance: ❖2020 growth will be driven by: ▪ further opening of 0-2 male centers & 4-6 female centers ▪ Continuing LFL growth and ramp up of non-LFL & new centers ▪ expanding corporate & PT business ▪ gradual improvement of realized prices ▪ focus on br
Slide 29: Thank you / Q&A
Thank you 6. Q&A
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