Leejam Sports Co. · TADAWUL:1830
Leejam Sports — FY2019 Earnings Presentation
38 slides from Leejam Sports's earnings presentation, March 2020
Slide 1: Leejam Sports Company Investor Presentation FY 2019
Leejam Sports Company Investor Presentation FY 2019
Slide 2: Table of Contents
Table of Contents 1 Company Profile 2 Board Members 3 Financial Performance 4 Outlook FY 2020 5 Q&A
Slide 3: Ministry of Sports announce the closure of Private Gyms and Sports Centers
Ministry of Sports announce the closure of Private Gyms and Sports Centers Referring to Ministry of Sport Announcement of the suspension of sports activity in the Kingdom with various sports, all tournaments and competitions, as well as the closure of private sports centers and studious effective Su
Slide 4: Impact of Corona Virus on LEEJAM
Impact of Corona Virus on LEEJAM • Holding on to Cash Cashflow • Delay Non-Critical Expenses and CAPEX • Continue payment to our employees Our • Free Freeze until further notice • Exercise from home Customer • Online content being develop Our • Travel Ban for Employees • Strict Quarantine for employ
Slide 5: Company Profile
1 Company Profile
Slide 6: Largest Fitness center operator in the Region
Largest Fitness center operator in the Region An indigenous and localized Proud Saudi Brand 25% Active Female 132 Member 283K 31 Female Centers as of, Dec 2019 Operational Fitness As at Dec 2019 Centers (December 2019) Added 67K (net) Added 10 Centers during 2019 during 2019 CONFIDENTIAL 6
Slide 7: Key Metrics
Key Metrics Revenue Net Income 942 SAR 800 SAR 206 SAR 180 SAR FY 2019 FY 2018 FY 2019 FY 2018 18% Growth 14% Growth EBITDA Net Income 470 SAR 313 SAR 69 SAR 55 SAR Q4 2019 Q4 2018 FY 2019 FY 2018 50% Growth 26% Growth Corporate Members Count 280+ 41K 283K 217k Corporate Corporate Active Member Acti
Slide 8: Participated in Fitness Events in 2019
Participated in Fitness Events in 2019 Winter Football Championship Swimming Championship Basketball 3x3 Championship Extreme FT Championship Ramadan Challenge Extreme FT Championship Strongest man Championship Tahadi event Championship Billiards Championship Walking is healthy event National Day ev
Slide 9: Fitness Time won the Fitness Brand of the year across the region
Fitness Time won the Fitness Brand of the year across the region
Slide 10: Macro KSA Environment
Macro KSA Environment Government initiatives aim at supporting the health and fitness sector Indicator Male Female Total Prevalence of obesity 31% 42% 34% As part of the Vision 2030, the Saudi Government Prevalence of diabetes 17% 21% 19% plans to promote a healthier lifestyle among its citizens wit
Slide 11: Diverse Brand Portfolio to Serve the Market
Diverse Brand Portfolio to Serve the Market Male Brands Female Brands Other Brands CONFIDENTIAL 11
Slide 12: Key Milestones
Key Milestones - Start Planning - Leejam Sports - Introduction of - Listing of 30% - Investcorp - The Company Phase Company is Fitness Time shares on acquires 25.1% opens its 100th - First “Fitness established and Plus and Tadawul (IPO) stake in Leejam fitness centre Time” center acquires the Fitnes
Slide 13: Leejam Strategy
Leejam Strategy OUR VISION.. To be the People's favorite and most Core Values.. accessible Wellness Club OUR MISSION.. To steer society towards a healthier lifestyle and encourage people to exercise daily. CONFIDENTIAL 13
Slide 14: Our Strategic Pillars
Leejam Strategic Pillars Our Strategic Pillars Unrivalled Focusing Class Customer on our Leading Growth Quality Experience People Tech CONFIDENTIAL 14
Slide 15: Market Leader with Strong Scale Advantage
Market Leader with Strong Scale Advantage Strong geographical footprint with presence in 28 cities Fitness Centres Evolution Geographic Footprint (as of 31 December 2019) Arar (1) (128) ● ● Sakakah Hafr (1) Al Batin (4) ● Tabuk ● (1) (3) Ha’il ● (1) ● Buraydah ● Jubail Yanbu Saihat ● (4) (2) Madinah
Slide 16: Segmented Concept, Recognised Brand (1/3)
Segmented Concept, Recognised Brand (1/3) Key Features Males Males Males Male Females Females Females Targeted at (age) 25yrs+ 16yrs+ 16yrs+ Junior 25yrs+ 16yrs+ 16yrs+ # of Fitness Centres1 – KSA 2 50 40 3 1 24 5 # of Fitness Centres1 – UAE - 1 2 0 - - 1 12-month Price (SAR)2 8,925* 4,988* 3,255* 3
Slide 17: Segmented Concept, Recognised Brand (2/3)
Segmented Concept, Recognised Brand (2/3) State-of–art Spacious Facilities with a Customized Service Offering ▪ Available in each center to assist ▪ Competitions and tournaments with equipment use, fitness organised on a regular basis for Floor regime etc. Special members Trainers Events ▪ >1100 Flo
Slide 18: Segmented Concept, Recognised Brand (3/3)
Segmented Concept, Recognised Brand (3/3) Corporate Business ▪ The Company delivers services to corporate partners under the Fitness Time Wellness umbrella ▪ Fitness Time is an attractive partner for large corporate clients given its country wide footprint in 28 cities in KSA & UAE ▪ Opportunity to
Slide 19: Performance since IPO (Sept 2018)
Performance since IPO (Sept 2018) Net Income (SAR million) Key Message 67.9 ❖ Consecutive growth in results post IPO LY on Sept 10, 2018. 53.8 53.9 ❖ New Strategy in place with 5 key pillars. 49.6 48.8 ❖ Opening of 10 centers over last 12 month (8% of our entire 39.8 39.6 portfolio). 32.7 ❖ New init
Slide 20: Board Members
AS) ANALY) ) Board Members
Slide 21: Board Members
Board Members Ali Al-Sagri Hamad Al-Sagri Dr. Mohammed Al-Kinani Chairman Board Member (Executive ) Board Member (independent) Hisham Al-Khaldi Vice Chairman & MD Board Member (independent) Tareq Al-Angari Abdulelah Al-Nemr Hessah Al-Sagri Board Member (independent) Board Member (independent) Board
Slide 22: Financial Performance
3 Financial Performance
Slide 23: Revenue and Net Income
Revenue and Net Income Revenue Key Messages: (SAR million) ❖ CY Revenue was 18% higher vs. LY, mainly due to: # of Fitness Centres 126 132 ▪ 10 new centers openings in CY, - new Male Centres 4 5 ▪ Ramping-up of 22 non-LFL centers opened LY, - new & Converted Female Centres 18 5 In MSR ▪ LFL subs. In
Slide 24: 2019 vs. 2018 Revenue Bridge
2019 vs. 2018 Revenue Bridge SR in Millions Key Messages: ❖ Increase in LFL revenue mainly driven by higher LFL subs. income by 8% vs. H1 LY full impact to appear in 2020. ❖ Non- LFL includes 22 centers opened during 2018. ❖ Increase in PT revenue mainly due to roll-out of additional PT centers (CY:
Slide 25: QOQ Growth
QOQ Growth Revenue (SAR million) Key Messages: # of Fitness Centres 117 112 115 126 134 132 133 132 ❖ QoQ growth continues with 19% revenue growth vs Q4 - new Male Centres 2 0 0 2 4 1 0 0 LY( LFL growth and ramping up of centers) - new & Converted Female Centres 1 5 2 10 3 1 0 1 ❖ Q4 revenue increas
Slide 26: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, 2019) (%, 2019) (SAR million) 1% (SAR million) 2% SR 9M SR 19M 9% SR 88M 28% 14% SR 222M SR 44% 1% SR 356M SR 6M 4% 76% SR 30M SR 21% SR 173M Individual Membership Corporate FT FT PRO FT PLUS FT JR FT LD FT UAE Personal training income R
Slide 27: Q4 vs Q3 2019 P&L
Q4 vs Q3 2019 P&L Key Messages: Statement of Profit / (Loss) In SRM Q4 2018 Q4 2019 Q3 2019 ∆ ∆% Revenue 225.1 267.4 238.4 29.0 12% ❖ CY Q4 Net income was higher by 39% vs. Q3 driven by 12% revenue growth coupled by lower cost of revenue by 2% mainly attributable to Costs of revenue 131.0 149.7 153.
Slide 28: 2019 P&L
2019 P&L Statement of Profit / (Loss) In SRM 2019 2018 ∆ ∆% Key Messages: Revenue 942.1 799.9 142.1 18% ❖ 2019 Net income was higher by 14% vs. LY due to increase in number of operating centers, resulting in 18% growth of revenue. Costs of revenue 582.8 494.6 (88.2) (15%) ❖ Increase in revenue was m
Slide 29: 2019 vs. 2018 Net Income Bridge
2019 vs. 2018 Net Income Bridge SR in Millions Key Messages: ❖ Male GP is showing growth of SR 15M mainly due to ramping-up of 2018 openings and better performance of LFL clubs (mainly male. ❖ Increase in female segment is mainly driven by ramping- up of 2018 openings and opening of new clubs during
Slide 30: COGS & SG&A
COGS & SG&A COGS (SAR million) 600 5 500 4.5 Key Messages: 4.4 4.2 4.2 400 4 ❖ 5% increase in average COGS / center is mainly due to higher 300 3.5 operational cost of female centers (15-20% higher female salaries 583 vs. male counterpart), depreciation under IFRS 16, consumables, 454 495 200 3 repa
Slide 31: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) 490 62 58 480 52 470 IFRS 16 SR 34.4M 460 42 450 32 SR 23.3M 440 430 21 22 18 420 12 410 2 400 443 484 425 390 -8 2017 2018 2019 Loans Finance Charges Key Messages: ❖ YOY Increase in loans to support center expansion. ❖ Approximate 50-6
Slide 32: Cash Generation & Returns
Cash Generation & Returns Cash Flow From Operations (SAR million) Cash flow / EBITDA 108% 86% 116% 545 314 268 262 243 302 2017 2018 2019 Cash flow from operating activities Deferred revenue Dividend Declared and Pay-out (SAR million) Dividend Ratio 60% 60% 60% 110 94 96 156 160 184 2017 2018 2019 D
Slide 33: 2019 Male & Female Segments
2019 Male & Female Segments Female Centers continue to make Material Contribution in 2019 Female Centers Openings CY Female centers Ramp-up Evolution Revenue and Gross Profit per centre (SAR million) Gross Margin 46% 41% 28% 41% 8.7 7.6 7.6 5.5 4.0 3.1 1.6 3.2 LFL Non-LFL New Total Ave. Revenue Ave.
Slide 34: Male vs. Female Centres Performance
Male vs. Female Centres Performance Based on 2019 performance Revenue and Gross Profit per centre (SAR million) Gross Margin, average 35% - 40% 40% - 50% 7.6 7.0 2.6 3.1 Male Female Ave. Revenue Ave. GP CONFIDENTIAL 34
Slide 35: Outlook FY 2020
4 Outlook FY 2020
Slide 36: Outlook FY 2020
Outlook FY 2020 No. of centres Growth Tentative Guidance: ❖ 2019 revenue & net income witnessed 18% & 14% growth vs. LY, despite ramping-up of 10 centers opened in last 12 months. The momentum is expected to continue during 2020, with revenue growth of 15-20% driven by: ▪ Further opening of 7-9 male
Slide 37: Q&A
5 Q&A
Slide 38: Disclaimer
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 pro