Leejam Sports Co. · TADAWUL:1830
Leejam Sports — FY2021 Earnings Presentation
29 slides from Leejam Sports's earnings presentation, 2022
Slide 1: Leejam Sports Company Investor Presentation FY 2021
Leejam Sports Company Investor Presentation FY – 2021
Slide 2: 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 3: Agenda
Leejam’s Profile & Overview Financial Performance Strategic Report Outlook FY 2022 Q&A
Slide 4: Leejam's Profile & Overview
Leejam’s Profile & Overview
Slide 5: Our Values
Our Vision To be the people’s favourite and most accessible wellness club. Our Mission To steer society towards a healthy lifestyle and encourage people to exercise daily. “More than just a gym” From its humble beginnings, Leejam has continued in its path of evolution, fast becoming the region’s lar
Slide 6: Leejam Brands
Leejam Brands Leejam prides itself on its international and professional Fitness Team, designed to make Fitness Time the gym of choice. Leejam currently operates the following fitness brands: Situated in strategically selected locations to provide an accessible fitness centre to the fitness communit
Slide 7: Key Highlights
Key Highlights FY 2020 FY 2021 FY 2020 FY 2021 Item (SAR M) Q4 2021 Q4 2020 Change % Q4 2019 Change % Revenue 229.1 13.9% 269.0 (2.9%) Total Members 261.0 Female members Gross profit 124.7 81.8 52.3% 117.4 6.2% 265K 292K 47K 60K Operating Profit 99.9 11.9 737.1% 79.9 25.1% EBITDA 154.1 64.2 139.9% 1
Slide 8: Highlights
Highlights Financial Highlights • Fitness Time recorded its highest quarterly amounted to SR 85.9M and annually net profit ever as well, which amounted to SR 206.0M • Gross Profit Margin in this quarter higher than Q4 2020 by 52.3%. New Centers – Q4 2021 • 4 Centers of “Fitness Time Men Xpress”. • 2
Slide 9: Strategic Report
Strategic Report
Slide 10: Business Model
Business Model Leejam’s business model looks at the ways in which the Company is able to generate value for its stakeholders, along with the resources used to achieve all strategic objectives. These are built taking consideration towards the Company’s vision to be the people’s favourite and most acc
Slide 11: Business Model (continued)
Business Model (continued) Services and Features The Facilities Leejam’s Value Creation • Half Olympic Sized Pools • Cardio • Membership growth, retention • Jacuzzi • Strength and loyalty • Sauna • Personal Training • Sustainable returns for • Steam shareholders • CrossFit Style • Soccer, Basketball
Slide 12: Strategy
Strategy Growth Leejam has carefully crafted its 3-year strategy to enable the To increase the rate of expansion of fitness centres through: Company to continue its upwards trajectory built on rapid growth, expansion, • Traditional new clubs diversification and evolution. Every step of the Company’s
Slide 13: Strategy Framework
Strategy Framework For Leejam to achieve on its strategic objectives, a clear and concise framework is required outlining the way in which the Company plans to execute its strategy and achieve its goals. To lead by example To manage business performance To ensure structure and process • Portray the
Slide 14: Risk Management
Risk Management Leejam strives to ensure that its stakeholders, its reputation and the value of its assets are protected through effective risk assessment, identification and mitigation. The Company is committed to continually developing a risk management culture through its Risk Management Policy,
Slide 15: Risk Management
Risk Management Strategic Risk Operational Risk People Risk Strategic Risks are those that failed business decisions pose to a company. The failure to maintain adequate security and safety environment as well as regulatory non-compliance The risk that staff either leave or that they do not By contin
Slide 16: KSA 138 Centers Locations
KSA Locations 138 Centers UAE 7 Centers Key Features Target audience Males 25+ Males 16+ Males 16+ Males 16+ Females Females Females Females Total 25+ 16+ 16+ 16+ No. of Centers – EOP 2021 3 51 36 12 1 33 5 4 145
Slide 17: Financial Performance
Financial Performance LEELA
Slide 18: Profitability – FY 2021
Profitability – FY 2021 Amounts in million (SAR) Revenue Gross Profit 100 0 400 900 350 800 300 700 250 600 500 200 400 150 300 100 200 50 951.8 662.6 885.3 367.1 139.9 372.3 100 0 0 2019 2020 2021 2019 2020 2021 EBITDA Operating Profit Net Profit 500 .0 450 .0 400 .0 350 .0 300 .0 250 .0 205.9 206.
Slide 19: QoQ Growth
QoQ Growth Amounts in million (SAR) Revenue per center 2.0 1.7 1.8 300 2.5 1.9 1.8 1.7 1.7 1.8 1.6 1.7 1.6 250 2.0 200 1.5 1.6 1.5 1.1 1.5 150 1.0 100 0.2 0.5 50 177 187 210 225 217 219 238 267 196 210 230 149 222 254 261 - 24 - Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Slide 20: Revenue Break-Down Q4 2021
Revenue Break-Down Q4 2021 Amounts in million (SAR) Revenue, % of Total Revenue Rental, 3, Other 1% Service, 1, 1% PT, 26, 10% 64, 24% Corporate, 29, 11% 197, 76% Individual Membership, Male Female 201, 77% Individual Membership Corporate PT Rental Other Service 20
Slide 21: Revenue FY 2021
Revenue FY 2021 Amounts in million (SAR) Revenue - Bridge 3% 1% 1% 4% 2% 23% 1% 20.6 4.8 4.1 25.2 10.7 153.7 3.6 885.4 662.7 881 FY 20 - Sub. LFL New Non-LFL Corporate PT Rental Income Other Income FY 21 - Sub. Revenue, % of Total Revenue 21
Slide 22: Q4 2021 P&L
Q4 2021 P&L Amounts in million (SAR) SR M (except EPS) Q4 2021 Q4 2020 ∆ ∆% Q4 2019 ∆ ∆% Revenue 261.0 229.1 31.9 13.94% 269.0 (8.0) (2.97%) Cost of revenue (136.4) (147.2) 10.9 (7.39%) (151.7) 15.3 (10.08%) Key Messages: Gross profit 124.7 81.8 42.8 52.32% 117.4 7.3 6.22% Gross profit Margin 47.76%
Slide 23: FY 2021 P&L
FY 2021 P&L Amounts in million (SAR) SR M (except EPS) FY 2021 FY 2020 ∆ ∆% FY 2019 ∆ ∆% Key Messages: Revenue 885.3 662.6 222.7 33.61% 951.8 (66.5) (6.99%) Cost of revenue (513.0) (522.7) 9.7 (1.86%) (584.7) 71.8 (12.28%) Increase in revenues during the year by SR 222.68 million is mainly due to:
Slide 24: FY COR & SG&A
FY COR & SG&A Amounts in million (SAR) 4.3 Key Messages: 600 4.4 580 4.3 5% decrease in average COR / center is mainly driven by: 4.2 The applying of cost cutting initiatives and rent concession recognized 560 4.1 during the year. 540 4.0 4.0 3.8 3.9 520 3.8 500 3.7 480 585 523 513 3.6 460 3.5 2
Slide 25: Loans & Finance Charges
Loans & Finance Charges Amounts in million (SAR) 600 70 Key Messages: 500 58 53 60 Overall bank loan decreased by SR 123M, however Cash decreased by SR 19.6M. 400 46 50 Weighted average cost of borrowings approximate 2.2% during Q3 2021 40 300 comparing last year of 2.8% due to decrease in SIBOR
Slide 26: Cash Generation
Cash Generation Amounts in million (SAR) 545 302 330 326 438 300 2019 2020 2021 Cash Flow from Operating Activites Deferred Revenue 26
Slide 27: 2022 Outlook
2022 Outlook
Slide 28: 2022 Outlook
2022 Outlook Tentative Guidance: Current Expected 2022 growth will be driven by: Category 31-Dec-21 31-Dec-22 • Further openings of 7 – 9 Xpress Clubs Female – Xpress 4 5–6 • Further openings of 8 – 10 Big Box centers Female - Big Box 39 42 – 44 • Expanding corporate & PT business Male - Big Box 90
Slide 29: Q&A Thank You
Q&A Thank You For enquires, please contact the Investor Relations Department at: investor.relations@leejam.com.sa