Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q1 2020 Earnings Presentation
27 slides from Leejam Sports's earnings presentation, 2020
Slide 1: Leejam Sports Company Investor Presentation Q1 2020
Leejam Sports Company Investor Presentation Q1 2020
Slide 2: Table of Contents
Table of Contents 1 COVID 19 - Impact 2 Executive Summary 3 Financial Performance 4 Outlook FY 2020 5 Q&A
Slide 3: Action taken by LEEJAM to reduce impact of COVID 19
Action taken by LEEJAM to reduce impact of COVID 19 • 70% of Saudi Employee were registered with SANED • Working hours reduced for employees Employee • Outsourced employee contracts were suspended Cost • Govt. Levy on employee waived till Jun 2020 • SEC announced 30% cut on bills from April to Jun a
Slide 4: Executive Summary
2 Executive Summary
Slide 5: Largest Fitness center operator in the Region
Largest Fitness center operator in the Region An indigenous and localized Proud Saudi Brand 27% Active Female 134 Member 255K 33 Female Centers as of, Mar 2020 Active Members as Operational Fitness at Mar 2020 Centers (March 2020) Added 13K (net) Added 2 Centers compared to Mar during Q1 2020 2019 C
Slide 6: Key Metrics
Key Metrics Revenue Net Income 196 SAR 217 SAR 6 SAR 40 SAR Q1 2020 Q1 2019 Q1 2020 Q1 2019 (10)% Growth (84)% Growth EBITDA Gross Income 72 SAR 99 SAR 50 SAR 75 SAR Q1 2020 Q1 2019 Q1 2020 Q1 2019 (27)% Growth (33)% Growth Corporate Members Count 283+ 32K 255K 242k Corporate Corporate Active Member
Slide 7: 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 7
Slide 8: Our Strategic Pillars
Leejam Strategic Pillars Our Strategic Pillars Unrivalled Focusing Class Customer on our Leading Growth Quality Experience People Tech CONFIDENTIAL 8
Slide 9: 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) (130) ● ● Sakakah Hafr (1) Al Batin (4) ● Tabuk ● (1) (3) Ha’il ● (1) ● Buraydah ● Jubail Yanbu Saihat ● (4) (2) Madinah
Slide 10: Financial Performance
3 Financial Performance
Slide 11: Revenue and Net Income
Revenue and Net Income Revenue Key Messages: (SAR million) ❖ CY Revenue was 10% lower vs. LY, mainly due to: # of Fitness Centres 133 134 ▪ Impact of covid-19 pandemic approx.. SR 44M. - new Male Centres 5 0 - new & Converted Female Centres 3 2 ▪ Excluding the impact of covid-19 revenue of Q1 2020 w
Slide 12: Revenue and Net Income Excl. covid-19 Impact
Revenue and Net Income . Excl. covid-19 Impact Revenue (SAR million) 3.0 250 2.5 44 200 2.0 150 1.6 1.5 1.5 100 1.0 50 0.5 217 196 0 0.0 LY CY Revenue Covid 19 Revenue Ave. Per Club Net Income (SAR million) 60 0.70 50 0.60 40 0.50 0.40 30 44 0.30 0.30 20 0.20 10 0.10 40 6 0.05 0 0.00 LY CY Net Incom
Slide 13: Q1 2020 vs. Q1 2019 Revenue Bridge
Q1 2020 vs. Q1 2019 Revenue Bridge In SRM Key Messages: ❖ Decrease in LFL revenue mainly driven by lower LFL subs. income by 40% vs. LY, mainly due to shorter campaigns and lower discounts during Jan and Feb and the fact that all clubs were closed since 16 Mar 20 (impact of covid-19 pandemic). ❖ Non
Slide 14: QOQ Growth
QOQ Growth Revenue (SAR million) Key Messages: # of Fitness Centres 117 112 115 126 134 132 133 132 134 ❖ Excluding impact of covid-19 pandemic, Q1 2020 - new Male Centres 2 0 0 2 4 1 0 0 0 revenue would have a growth of 11% vs. Q1 2019 - new & Converted Female Centres 1 5 2 10 3 1 0 1 2 280 2.5 In
Slide 15: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, Q1 2020) (%, Q1 2020) (SAR million) 1% (SAR million) 2% SR 2M SR 4M 10% SR 19M 10% 30% SR 19M SR 52M 45% SR 79M 0.4% SR 1M 3% 80% SR 5M SR156M 20% SR 35M Individual Membership Corporate FT FT PRO FT PLUS FT JR FT LD FT UAE Personal train
Slide 16: Q1 2020 vs Q4 2019 P&L
Q1 2020 vs Q4 2019 P&L Statement of Profit / (Loss) In SRM Q1 2019 Q1 2020 Q4 2019 ∆ ∆% Key Messages: Revenue 217.3 196.1 267.4 (71.2) (27%) ❖ CY Q1 Net income was lower by 22% vs. Q4 LY driven by 27% Costs of revenue 142.2 145.5 149.7 4.2 (3%) revenue decline partly offset by lower cost of revenue
Slide 17: Q1 2020 P&L
Q1 2020 P&L Statement of Profit / (Loss) In SRM Q1 2020 Q1 2019 ∆ ∆% Key Messages: Revenue 196.1 217.3 (21.2) (10%) ❖ Revenue decline of SR 21M (10%) mainly due to lower subs, income by SR Costs of revenue 145.5 142.2 (3.2) 2% 61M (28%) due to lower Jan and Feb sales and closure of all clubs since 1
Slide 18: Q1 2020 vs. Q1 2019 Net Income Bridge
Q1 2020 vs. Q1 2019 Net Income Bridge In SRM Key Messages: ❖ Due to the deep impact of covid-19 pandemic all business segment is showing decline compared to LY, as all clubs including all activities were subject to closure since 16 Mar 2020. CONFIDENTIAL 18
Slide 19: COGS & SG&A
COGS & SG&A COGS (SAR million) 160 1.5 Key Messages: 110 1.1 1.1 1.0 1.0 ❖ 1% increase in average COGS / center is mainly due to higher 146 operational cost of female centers (15-20% higher female salaries 142 60 119 vs. male counterpart), consumables, repairs, rising government levies and cost of o
Slide 20: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) 500 62 480 52 42 460 32 440 22 420 16 13 12 400 6 2 455 425 493 380 -8 Q1 2018 Q1 2019 Q1 2020 Loans Finance Charges Key Messages: ❖ YOY Increase in loans to support center expansion. ❖ Approximate 50-60% split by managing the portfolio
Slide 21: Cash Generation & Returns
Cash Generation & Returns Cash Flow From Operations (SAR million) Cash flow / EBITDA 49% 112% 99% 111 223 243 73 263 31 Q1 2018 Q1 2019 Q1 2020 Cash flow from operating activities Deferred revenue Dividend Declared and Pay-out (SAR million) Dividend Ratio 60% 60% 60% 110 96 160 184 - 5 2018 2019 Q1
Slide 22: Q1 2020 Male & Female Segments
Q1 2020 Male & Female Segments Female Centers continue to make Material Contribution in Q1 2020 Female Centers Openings CY Female centers Ramp-up Evolution Revenue and Gross Profit per centre (SAR million) Gross Margin 33% 28% (75%) 31% 1.7 1.6 1.3 0.6 0.4 0.6 0.5 LFL Non-LFL New(0.5) Total Ave. Rev
Slide 23: Male vs. Female Centres Performance
Male vs. Female Centres Performance Based on Q1 2020 performance Revenue and Gross Profit per centre (SAR million) Gross Margin, average 25% - 30% 30% - 35% 1.63 1.4 0.34 0.50 Male Female Ave. Revenue Ave. GP CONFIDENTIAL 23
Slide 24: Outlook FY 2020
4 Outlook FY 2020
Slide 25: Outlook FY 2020
Outlook FY 2020 No. of centres Growth Tentative Guidance: ❖ 2020 growth will be driven by: ▪ further opening of 0-2 male centers & 4-6 female centers ▪ Continuing LFL growth and ramp up of non-LFL & new centers ▪ expanding corporate & PT business ▪ gradual improvement of realized prices ▪ focus on b
Slide 26: Q&A
5 Q&A
Slide 27: 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
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