Leejam Sports Co. · TADAWUL:1830
Leejam Sports — 9M 2020 Earnings Presentation
30 slides from Leejam Sports's earnings presentation, 2020
Slide 1: Fit for Growth – Investor Presentation 9M 2020
FIT FOR GROWTH Investor Presentation 9M 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
A Proud Saudi Brand & Largest Fitness center operator in the Region 29M Financial Highlights VISITORS in 2019 136 36 Introducing Revenue (IN SAR) Gross Profit (IN SAR) Operational Fitness Centers Box12, Class in Q3 2020 (September 2020) Female Centers as of, September 2020 429M 50M Added 6 Centers d
Slide 9: Business Review
Business Review Corporate Wellness 3 1 Clubs 6 Clubs 51 29 Clubs 3 40 Clubs 2 Clubs 52 Clubs Clubs Clubs
Slide 10: 2. COVID-19
2. COVID-19
Slide 11: Post COVID-19
Post COVID-19 Additional Cost & Cost Market Condition Footfall Post COVID-19 Financial Health Saving • Small Player in the market • Rental waive and discounting requests 2,00 0,000 80% 90% submitted by Leejam to all Landlords resulted in • Holding to adequate cash of SR 289M at are under pressure af
Slide 12: 3. Executive Summary
3. Executive Summary
Slide 13: Key Metrics
Key Metrics Gross Members Revenue Income EBITDA Net Income Count SAR 210 M 63 M 92 M 27 M 242K Active Member Q3 2020 Q3 2020 Q3 2020 Q3 2020 September 2020 (12%) (26%) (24%) (46%) (17%) 238 M 85 M 121 M 49 M 292K Active Member Q3 2019 Q3 2019 Q3 2019 Q3 2019 September 2019
Slide 14: Market Leader with Strong Scale Advantage
Market Leader with Strong Scale Advantage, Fitness Centres Evolution Strong geographical footprint with presence # of Fitness in 28 cities Centers Geographic Footprint (as of 30 September 2020) Arar (1) (131) ● ● Sakakah Hafr (1) Al Batin (5) ● Tabuk ● (1) (3) Ha’il ● (1) ● Buraydah ● Jubail Yanbu S
Slide 15: 4. Financial Performance
4. Financial Performance
Slide 16: Revenue and Net Income – 9M 2020
Revenue and Net Income – 9M 2020 Revenue Key Messages: # of Fitness Centres 133 136 - new Male Centres 6 0 - new & Converted Female Centres 4 6 ❖ CY Revenue was 36% lower vs. LY, mainly due to: ▪ Impact of Covid-19 pandemic approx. SR 257M. (36%) ▪ Excluding the impact of Covid-19 revenue of 9 Month
Slide 17: Revenue and Net Income – Q3 2020
Revenue and Net Income – Q3 2020 Revenue Ave. Revenue per Club Key Messages: 1.79 1.54 ❖ CY Q3 Revenue was 12% lower vs. LY Q3, mainly due to: ▪ Decline in subs. Income and impact of post covid-19 market conditions. ▪ Provided that subs. Income and active members are declining 238 210 compared to LY
Slide 18: QoQ Growth (SAR million)
QoQ Growth (SAR million) Revenue # of Fitness Centres 112 115 126 134 136 117 134 132 133 132 134 - new Male Centres 2 0 0 2 4 1 0 0 0 0 0 - new & Converted 1 5 2 10 3 1 0 1 2 2 4 Female Centres 300 2.5 1.9 2 250 1.8 1.7 1.8 1.5 1.6 1.6 1.5 1.6 2 200 1.5 150 238 267 225 217 219 1 100 177 187 210 196
Slide 19: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, 9M 2020) (%, 9M 2020) (SAR million) (SAR million) 11, 3% 3, 1% 43, 10% 4, 1% 5, 1% 97, 25% 37, 9% 178, 46% 11, 3% 345, 80% 79, 21% Male FT Male Pro Male Plus Sepior Ladies FT Ladies Pro Ladies Plus UAE FT UAE Male Pro Individual Membersh
Slide 20: Q3 Marketing Campaigns
Q3 Marketing Campaigns 2020 Vs 2019 Campaigns Offer Days 3mo 6mo 12mo 2019 July Campaign 10 Buckets as per the Clubs 35 - 50% 2020 July Campaign 31 40% 40% 40% 2019 August Campaign 27 Buckets as per the Clubs 20% - 45% 2020 August Campaign 25 30% 30% + 1 month Free 30% + 1 month Free September – Sau
Slide 21: 9M 2020 P&L
9M 2020 P&L SR M 9M 19 9M 20 ∆ ∆% Key Messages: Revenue 674.7 429.4 (245.3) (36.36%) Cost of revenue 433.1 379.1 (54.0) (12.46%) ❖ Revenue decline of SR 245M (36%) mainly due to closure of all clubs since 16th Mar until Jun 21st, 2020 due to covid-19 Gross profit 241.6 50.3 (191.3) (79.18%) pandemic
Slide 22: Q3 2020 P&L
Q3 2020 P&L SR M Q3 19 Q3 20 ∆ ∆% Key Messages: Revenue 238.4 209.5 (28.8) (12.10%) Cost of revenue 153.3 146.4 (6.9) (4.52%) ❖ Revenue decline of SR 29 (12%) mainly due to adverse market conditions post covid-19 pandemic. Gross profit 85.0 63.1 (21.9) (25.76%) Gross profit Margin 35.67% 30.12% (5.5
Slide 23: COGS & SG&A
COGS & SG&A 440 3.2 3.3 COGS 3.2 Key Messages: 3.1 420 (SAR million) 3.1 400 ❖ 9% decrease in average COGS / center is mainly driven by: ▪ Lower salaries and benefits (lower allowances and 3.0 380 2.9 commissions), decrease in utilities, cleaning expenses, 2.9 360 2.8 consumables and security, partl
Slide 24: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) 700 70 Key Messages: 58 27 ❖ YOY Increase in loans to support center expansion. 600 60 500 50 ❖ Overall bank loan increased by SR 134M, however Cash 34 44 increased by SR 221M 400 40 ❖ Approximate 50-60% split by managing the portfolio
Slide 25: Cash Generation
Cash Generation Cash Flow From Operations & Deferred Revenue (SAR million) 478 374 329 256 190 206 9M 2018 9M 2019 9M 2020 Cash Flow from Operating Activites Deferred Revenue
Slide 26: 9M 2020 Male & Female Segments
9M 2020 Male & Female Segments Female Centers continue to make Material Contribution in 9M 2020 Female Centers Openings 4 2 1 2 0 36 38 31 Dec-19 New Converted Closed Sep-30 Expected New Expected Expected Dec Converted 2020 CY Female centers Ramp-up Evolution Revenue and Gross Profit per centre (SAR
Slide 27: Male vs. Female Centres Performance
Male vs. Female Centres Performance Based on Q3 2020 performance Revenue and Gross Profit per centre (SAR million) % Gross Margin, average 11% 12% 3.4 3.2 0.4 0.42 Ave. Revenue Ave. GP Male Female
Slide 28: 5. Outlook FY 2020
5. Outlook FY 2020
Slide 29: Outlook FY 2020
Outlook FY 2020 No. of centres Growth Tentative Guidance: ❖2020 growth will be driven by: ▪ Further opening of 0-2 female centers 0-2 ▪ Continuing LFL growth and ramp up of non-LFL & new centers ▪ Expanding corporate & PT business 138-140 ▪ gradual improvement of realized prices ▪ focus on bringing
Slide 30: Thank you – Q&A
Thank you 6. Q&A
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