Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q3 2019 Earnings Presentation
22 slides from Leejam Sports's earnings presentation, October 2019
Slide 1: Leejam Sports Company Investor Presentation YTD Sept 2019
Leejam Sports Company Investor Presentation YTD Sept 2019
Slide 2: Table of Contents
Table of Contents Page 1. Company Profile 3 2. Financial Performance 7 3. Outlook 18 4. Q&A 21 CONFIDENTIAL 2
Slide 3: 1. Company Profile
1. Company Profile CONFIDENTIAL 3
Slide 4: Largest Fitness center operator in the MENA Region
Largest Fitness center operator in the MENA Region An indigenous and localized Proud Saudi Brand 133 incl. 30 female 292k Operational Fitness Centers Active Members (30 Sept 2019) (30 Sept 2019) Added 10 centers in YTD Sept 2019 Added 75k members (net) in YTD Sept 2019 26% 24th Female members of tot
Slide 5: Other Key Metrics
Other Key Metrics 675M SAR 575M SAR 138M SAR 126M SAR Revenues Revenues Net Income Net Income (YTD Sept 2019) (YTD Sept 2018) (YTD Sept 2019) (YTD Sept 2018) 17% growth 9% growth 334M SAR 225M SAR 121M SAR 88M SAR EBITDA EBITDA EBITDA EBITDA (YTD Sept 2019) (Sept 2018) (Q3 2019) (Q3 2018) 49% growth
Slide 6: Performance since IPO (Sept 2018)
Performance since IPO (Sept 2018) Net Income ACCOLADES: (SAR million) ❖ One Off expenses related to depreciation expenses of female Center under conversion, provision for Legal Case and Charging one off Repair and Maintenance Expenses ❖ Consecutive growth in results comparing last qtrs. 11% growth o
Slide 7: 2. Financial Performance
2. Financial Performance CONFIDENTIAL 7
Slide 8: YTD Sept Revenue and Net Income
YTD Sept Revenue and Net Income Revenue Key Messages: (SAR million) ❖ YTD Sept CY Revenue was 17% higher vs. LY, mainly due # of Fitness Centres 117 133 to: - new Male Centres 2 6 - new & Converted Female Centres 8 4 ▪ 10 new centers openings in CY, In MSR ▪ Ramping-up of 22 non-LFL centers opened L
Slide 9: YTD Sept 2019 vs. YTD Sept 2018 Revenue Bridge
YTD Sept 2019 vs. YTD Sept 2018 Revenue Bridge Amount in SRM Key Messages: ❖ Increase in LFL revenue mainly driven by higher LFL subs. income by 18.5% vs. YTD Sept LY, partly offset by lower conversion ratio and lower opening deferred revenue carried from previous year due to lower LFL Subs. Income
Slide 10: QOQ Growth (Q1 2018 – Q3 2019)
QOQ Growth (Q1 18 – Q3 19 CY & LY) Revenue (SAR million) Key Messages: # of Fitness Centres 119 115 117 126 134 134 133 ❖ QoQ growth continues with 17% revenue growth vs Q2 - new Male Centres 2 0 0 2 4 1 0 LY( LFL growth and ramping up of centers) - new & Converted Female Centres 1 4 3 10 3 1 0 ❖ Q2
Slide 11: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, YTD Sept 2019) (%, YTD Sept 2019) YTD Sept No. of centers by category 2018 2017 2016 2019 FT Men 53 49 50 48 PRO Men 43 41 42 40 Plus Men 2 4 4 3 Junior 4 4 8 9 Basic 0 0 0 1 Kidizenia 1 2 0 1 FT Female 24 20 4 0 PRO Female 6 6 4 0 Total
Slide 12: YTD Sept 2019 P&L
YTD Sept 2019 P&L `In MSR Key Messages: YTD Sept LY YTD Sept CY ∆% ❖ YTD Sept Net income was higher by 9% vs. LY due to increase in number of Centers # (EOP) 117 133 14% operating centers, resulting in 17% growth of revenue. Average # Of Centers 117 132 12% ❖ Increase in revenue was mainly due to; R
Slide 13: YTD Sept 2019 vs. YTD Sept 2018 Net Income Bridge
YTD Sept 2019 vs. YTD Sept 2018 Net Income Bridge Amount in SRM (1.8) 5.3 (2.3) (1.6) 6.1 (9.3) 15.0 1.0 (0.7) 138.0 126.2 YTD Sept 2018 Adj. of Dep and YTD Sept 2019 Advertising & Legal Provision General & Impairment loss Other Income Finance costs Zakat YTD Sept 2019 Net Income R&M GP Marketing ad
Slide 14: Balance Sheet; Shareholders' Equity and Debt
Balance Sheet Total Assets (SAR million) IFRS 16 Adjustments Key Messages: ❖ Increase in total assets by 61% is due to transition to IFRS 16, where the Company recognizes right- of-use assets of SR 853.9M and corresponding lease liability of SR 962.4M (net). ❖ Adjustment to opening retained earnings
Slide 15: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) IFRS 16 SR 24.8M Key Messages: ❖ YOY decrease in loans of SR32M mainly due to repayment as per plan and delay in opening of centers. ❖ Weighted average cost of borrowings approximate 4.08%. ❖ Increase in YTD Sept 2019 Finance charges ma
Slide 16: Cash Generation & Returns
Cash Generation & Returns Cash Flow From Operations (SAR million) Cash flow / EBITDA 99% 85% 143% Dividend Declared and Pay-out (SAR million) Dividend Ratio 60% 60% 60% • Company continues to pay 60% dividend of distributable income (54% of net income). • Q3 2019 dividend not announced yet due to Bo
Slide 17: Male & Female Segments
YTD Sept 2019 Male & Female Segments Female Centers continue to make Material Contribution in YTD Sept 2019 Female Centers Openings YTD Sept CY Female centers Ramp-up Evolution Revenue and Gross Profit per centre (SAR 000) Gross Margin % 47% 35% 12% 40% CONFIDENTIAL 17
Slide 18: 3. Outlook
3. Outlook CONFIDENTIAL 18
Slide 19: Outlook FY 2019
Outlook FY 2019 Tentative Guidance: ❖ YTD Sept revenue & net income witnessed 17% & 9.3% growth vs. LY, despite No. of centres Growth ramping-up of 21 centers opened in last 9 months. The momentum is expected to continue during Q4 2019, with revenue growth of 10-15% driven by: ▪ further opening of 6
Slide 20: Outlook FY 2020
Outlook FY 2020 ❖15 New Centers in Y 2020 (7 Male & 8 Female) ❖Corporate Wellness ❖Trial Small Box Model ❖Secondary Spend Initiatives ❖Cost saving Initiatives ❖New Tech. ❖Enhanced Customer Experience CONFIDENTIAL 20
Slide 21: 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
Slide 22: Q&A
Q&A CONFIDENTIAL 22
Leejam Sports Company — Q3 2019 Earnings Presentation on 6ix