Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q3 2021 Earnings Presentation
28 slides from Leejam Sports's earnings presentation, 2021
Slide 1: Leejam Sports Company Investor Presentation Q3 2021
Leejam Sports Company Investor Presentation Q3 – 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 2021 Q&A
Slide 4: Leejam's Profile & Overview
Leejam’s Profile & Overview
Slide 5: Our Vision, Mission and 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 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Item (SAR M) Q3 2021 Q3 2020 Change % Q3 2019 Change % Revenue 211.3 20.1% 241.4 5.1% Total Members 253.8 Female members Gross profit 128.5 68.6 87.3% 88.1 45.9% 242K 289K 47K 59K Operating Profit 89.7 38.9 130.6% 62.7 43.1% EBITDA 123.9 86.5 43.2% 118.
Slide 8: Q3 Highlights
Q3 Highlights Financial Highlights • Fitness Time recorded its highest quarterly net profit ever, which amounted to SR 76.2M • The Gross Profit in this quarter included a one off. However, the normalized Gross Profit is still higher than 2020 by 62.0% & 2019 by 26.1% which amounted to SR 111.1M, as
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 134 Centers Locations
KSA Locations 134 Centers UAE 5 Centers No. of Centers 3 53 36 8 1 30 5 3
Slide 17: Financial Performance
Financial Performance LEELA
Slide 18: Profitability – Q3 2021
Profitability – Q3 2021 Amounts in million (SAR) Revenue Gross Profit 5.1% 45.9% 20.1% 87.3% 50.6% 36.5% 32.4% 88.1 68.6 128.5 241.4 211.3 253.8 Q3 2019 Q3 2020 Q3 2021 % Gross Profit Margin Q3 2019 Q3 2020 Q3 2021 Operating Profit EBITDA Net Income 43.1% 4.6% 56.1% 130.6% 43.2% 186.5% 35.3% 48.8% 3
Slide 19: QoQ Growth
QoQ Growth Amounts in million (SAR) Revenue per Center 300 2.5 2 1.8 1.8 1.7 1.9 1.7 1.7 1.8 250 1.6 1.6 2 1.6 1.5 200 1.5 1.5 150 1.1 1 100 0.2 0.5 50 177 187 210 225 217 219 241 267 196 24 211 230 149 222 254 0 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 20
Slide 20: Revenue Break-Down Q3 2021
Revenue Break-Down Q3 2021 Amounts in million (SAR) 3, 1% 4, 2% 24, 9% 65, 25% 26, 10% 189, 75% 197, 78% Revenue, % of Total Revenue Revenue, % of Total Revenue Male Female Individual Membership Corporate PT Rental Other Service 20
Slide 21: Q3 2021 P&L
Q3 2021 P&L Amounts in million (SAR) SR M Q3 2021 Q3 2020 ∆ ∆% Q3 2019 ∆ ∆% Key Messages: Revenue 253.8 211.3 42.5 20.11% 241.4 12.4 5.14% Cost of revenue (125.4) (142.8) 17.4 (12.18%) (153.3) 28.0 (18.24%) Revenue increased by SR 42.5M representing 20.1% due to: Gross profit 128.5 68.6 59.9 87.34
Slide 22: 9M 2021 P&L
9M 2021 P&L Amounts in million (SAR) SR M YTD 2021 YTD 2020 ∆ ∆% YTD 2019 ∆ ∆% Key Messages: Revenue 624.3 433.5 190.7 44.00% 682.8 (58.5) (8.57%) Cost of revenue (376.6) (375.5) (1.1) 0.30% (433.1) 56.5 (13.04%) Increase in revenue by SR 190.7M mainly driven by: Gross profit 247.7 58.0 189.6 326.
Slide 23: Q3 COR & SG&A
Q3 COR & SG&A Amounts in million (SAR) Key Messages: 180 1.4 0 160 1.15 12% decrease in average COR / center is mainly driven by: 1.06 1.2 0 0.93 The applying of cost cutting initiatives and rent concession recognized 140 1.0 0 during the quarter. 120 0.8 0 100 80 0.6 0 60 0.4 0 40 0.2 0 20 153
Slide 24: Loans & Finance Charges
Loans & Finance Charges Amounts in million (SAR) 600 14 Key Messages: 12.6 Overall bank loan decreased by SR 87M, however Cash decreased by SR 13 12.4 11.6 12 19.6M. 500 11 Approximate 50-60% split by managing the portfolio between floating & 10 400 9 8 fixed rated borrowings. 300 7 6 Weighted
Slide 25: Cash Generation
Cash Generation Amounts in million (SAR) 600 500 400 300 200 100 478 302 195 326 350 377 0 Q3 2019 Q3 2020 Q3 2021 Cash Flow from Operating Activites Deferred Revenue 25
Slide 26: 2021 Outlook
2021 Outlook
Slide 27: 2021 Outlook
2021 Outlook Tentative Guidance: Current Expected 2021 growth will be driven by: Category 30-Sep-21 31-Dec-21 • Further openings of 9 – 14 Xpress Clubs Female - Xpress 3 5–8 • Further openings of 2 – 7 Big Box centers Female - Big Box 36 37 – 40 • Continuing LFL growth and ramp up of non-LFL & new c
Slide 28: Q&A Thank You
Q&A Thank You For enquires, please contact the Investor Relations Department at: investor.relations@leejam.com.sa
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