Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q2 2024 Earnings Presentation
26 slides from Leejam Sports's earnings presentation, July 2024
Slide 1: Earnings Presentation Q2/H1 2024
Earnings Presentation Q2/H1 2024
Slide 2: Disclaimer
DISCLAIMER All information included in this document is for general use only and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or su
Slide 3: Executive Summary
Executive Summary
Slide 4: Executive summary: double-digit growth in H1 2024
Executive summary Led by its Core, Leejam achieved double digits in revenue, profit & membership numbers in H1 2024 SAR 687 M SAR 344 M SAR 275 M SAR 135 M SAR 199 M100 M SAR SAR 343 M 175 M SAR xxx 6M 595.5 Q2 458.9 686.3 xxx 6M Q2 xxx 1,325 xxx 6M Q2 6M Q2 Q4 2023YE 7 6 Q4 2023YE Q4 Revenue Gross
Slide 5: During Q2 2024, Leejam grew its network, focusing on member retention
Executive summary During Q2 2024, Leejam grew its network, with a focus on members retention 5 4 16% 15% Additional Centers & Refurbished centers Ave. Monthly Member YOY Increase on Total Studios During Q2 2024 Growth Visits 45% 14% -3% 7% YOY Increase YOY Increase YOY YOY Member Per Center in PT Se
Slide 6: Leejam operates in an underpenetrated market with great growth potential
Executive summary Leejam operates in an underpenetrated market, with great growth potential 428 K 336 K 92 K + 81 K Members Male Scheduled Classes Female +24 K PT sessions +627 K GX Attendance +59 Total Refurbished Center 8.8 M Total Visits KSA 199 UAE 187 12 Centers & Studios Centers & Studios Leej
Slide 7: Network Expansion & Members Trend
Network Expansion & Members Trend
Slide 8: Memberships continue growth with record Q2 numbers
Network Expansion & Members Trend Memberships continue its growth with record Q2 numbers … Member Count Leejam’s Centers & Studios Movement • Membership numbers grew significantly in Q2 2024 vs Q2 2023 driven by Concept Studio & Academies Fitness Time additional operation center and higher retention
Slide 9: Q2/H1 2024 Financial results
Q2/H1 2024 Financial results
Slide 10: Sustained margins in Q2 2024 despite ramp-up pressure
Q2/H1 2024 Financial results Leejam continued to sustain lucrative margins in Q2 2024 despite pressure from ramp up Revenue Gross Profit Gross Profit Margin • Revenue grew by 14% driven by the increase in numbers of members and centers, which Revenue was led by non-mature centers. 9% 135 14% 344 124
Slide 11: Record H1 revenue with sustained margins
Q2/H1 2024 Financial results With record revenue in H1, Leejam continued to sustain its lucrative margins Revenue • Revenue grew by double-digits, driven by growth from the membership and subscription revenue, led by the increase in number of members and centers. Gross Profit Gross Profit Margin Mar
Slide 12: Member growth supports Fitness Time revenue and net income per center
Q2/H1 2024 Financial results Expanding growth of members continue to support Fitness Time revenue & net income per center Average Revenue per center 1.4% growth in Fitness Time Revenue per center vs. Q2 2023 mainly due to higher number of members, We expect revenue per center to decrease as Xpress C
Slide 13: Q2 2024 Highlights
Executive summary Q2 2024 Highlights • 14% growth in revenue comparing with LY and inline with 1Q'24 revenue despite seasonality. • 14% growth in revenue per center for non-mature clubs comparing with LY. • Planned extension of pre-opening campaigns, speeding the ramp up periods came at the cost of
Slide 14: Q2 cost of revenue, G&A and S&M
Q2/H1 2024 Financial results CoR increased as Leejam continue its opening of new centers, investment in quality of services and refurbishment program COR COR Per Center continues 208 177 COR & COR/Center 1.2 • An increase of 17% in overall cost of revenue compared to Q2 1.1 2023 mainly due to the in
Slide 15: H1 cost of revenue, G&A and S&M
Q2/H1 2024 Financial results CoR increased as Leejam continue its opening of new centers, investment in quality of services and refurbishment program COR COR Per Center continues 412 COR & COR/Center 346 • An increase of 19% in overall cost of revenue compared to H1 2.3 2023 mainly due to the increa
Slide 16: Strong financial position, solid returns, acceptable leverage
Q2/H1 2024 Financial results Strong financial position, solid returns, and acceptable leverage level Deferred revenue 10% 409 373 • The increase in deferred revenue of 10% came as result of the company focus efforts and the consistent growth in membership numbers observed across all segments. • The
Slide 17: Strong cash generation with accelerated investment on expansion
Q2/H1 2024 Financial results Strong cash generation with accelerated investment on expansion Cash Flows H1 2024 Free Cash Flow = 26 Cash Flows H1 2023 Free Cash Flow = 153 Solid Operating Cash Flows: Free Cash Flows: Demonstrating a strong operational performance with a cash inflow of 315 Despite th
Slide 18: Segment performance
Segment performance
Slide 19: Fitness Time male and female segments, Q2
Segment performance For Fitness Time, Female segment showed strong growth both in revenue and member/center while male segment still the dominate Male Segment • Male segments continue to be the dominant segment and ending of Q2 2024 with 10% revenue growth. • The segment GP increased by 7% to SR 107
Slide 20: Fitness Time male and female segments, H1
Segment performance For Fitness Time, Female segment showed strong growth both in revenue and member/center while male segment still the dominate Male Segment • Male segments continue to be the dominant segment and ending of H1 2024 with 14% revenue growth and 2% growth of Revenue per Center. • The
Slide 21: Outlook
Outlook
Slide 22: Tentative Guidance and Projects Pipeline as of Q2 2024
Outlook Tentative Guidance 2024 growth will be driven by: • Further growing LFL and & Non LFL Centers • Improving customer experience, member retention & services • Further openings of Xpress & Big Box centers Projects Pipeline as of Q2 2024 • Continuing focus/growth on Corporate wellness & PT busin
Slide 23: Q&A
Q&A For enquires, please contact the Investor Relations Department at: investor.relations@leejam.com.sa
Slide 24: Appendix
Appendix
Slide 25: Income statement Q2 and H1 2024
Appendix SAR M Q2 2023 Q2 2024 Change Change % SAR M H1 2023 H1 2024 Change Change % Revenue 302 344 42 14% Revenue 579 687 108 19% Cost of revenue (177) (208) (31) 17% Cost of revenue (346) (412) (67) 19% GROSS PROFIT 124 135 11 8% GROSS PROFIT 233 275 42 18% General and administrative expenses (29
Slide 26: Thank You
——_— — / a i | | OAV Thank You