Leejam Sports Co. · TADAWUL:1830
Leejam Sports — FY2018 Earnings Presentation
30 slides from Leejam Sports's earnings presentation, 2019
Slide 1: Leejam Sports Company Investor Presentation FY 2018 Results
Leejam Sports Company Investor Presentation FY 2018 Results
Slide 2: Table of Contents
Table of Contents Page 1. Company Profile 3 2. Financial Performance 16 3. Outlook FY 2019 28 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 126 incl. 26 female 217k Operational Fitness Centers Active Members & growing (31 December 2018) (31 December 2018) 16% 15th Female members of total member base Largest Fitness Chain in the World (26 fem
Slide 5: Other Key Metrics
Other Key Metrics 800M SAR 733M SAR 180M SAR 174M SAR Revenues Revenues Net Income Net Income (FY 2018) (FY 2017) (FY 2018) (FY 2017) 313M SAR 291M SAR 54M SAR 49M SAR EBITDA EBITDA Net Income Net Income (FY 2018) (FY 2017) (Q4 2018) (Q4 2017) 255+ 40k Participated in 13 Corporates as Corporate Memb
Slide 6: 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 7: Diverse Brand Portfolio to Serve the Market
Diverse Brand Portfolio to Serve the Market Male Brands Female Brands Other Brands CONFIDENTIAL 7
Slide 8: Key Milestones
Key Milestones - Start Planning - First “Fitness - Introduction of - The Company - Investcorp - Intro of PT - Launch of Phase Time” Fitness Time opens its 50th acquires 25.1% - UAE launch female fitness - First “Fitness standalone Pro category fitness center stake in Leejam - Exclusive centers Time”
Slide 9: Leejam 3.0: 6 Key Pillars
Leejam 3.0 Goal: To be Top 10 Fitness Company in the World and be Employer of Choice in KSA Invest In Open Door Our People Policy Enhance 6 Key Pillars to Improved Customer achieve Leejam 3.0 Corporate Experience Governance in the next 3 years Grow and Leverage Exceed Technology Shareholders Expecta
Slide 10: Market Leader with Strong Scale Advantage
Market Leader with Strong Scale Advantage Strong geographical footprint with presence in 27 cities Fitness Centres Evolution Geographic Footprint (as of 31 December 2018) (122) ● Sakakah Hafr (1) Al Batin (4) ● Tabuk ● (1) (1) Ha’il ● (1) ● Buraydah ● Jubail Yanbu Saihat ● (4) (2) Madinah ● Unaizah
Slide 11: 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 4 46 39 4 - 20 5 # of Fitness Centres1 – UAE - 1 2 0 - - 1 12-month Price (SAR)2 8,925* 4,988* 3,255* 3
Slide 12: 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 Competitions and tournaments assist with equipment use, organised on a regular basis Floor fitness regime etc. Special for members Trainers Events >1000 Flo
Slide 13: 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 27cities in KSA & UAE Opportunity to e
Slide 14: Other Significant Accolades
Other Significant Accolades Shaikh Mohammad Bin Rashid Award – in 2015 CONFIDENTIAL 14
Slide 15: Other Significant Accolades (contd.)
Other Significant Accolades (contd.) PNU the largest Fitness center in the world – operated by Fitness Time (in process of getting Guinness World Records Accreditation) CONFIDENTIAL 15
Slide 16: 2. Financial Performance
2. Financial Performance CONFIDENTIAL 16
Slide 17: FY Revenue and Net Income
FY Revenue and Net Income Revenue Key Messages: (SAR million) Revenue was 9% higher vs. LY, mainly due to; # of Fitness Centres 102 112 126 13 4 new centers openings in CY (in particular 18 - new Male Centres 12 female center openings including converted - new & Converted Female - 8 18 centers),
Slide 18: Revenue Break-Down
Revenue Break-Down Revenue by Type Revenue by Brand (%, FY 2018) (%, FY 2018) No. of centers by category 2018 2017 2016 FT Men 49 50 48 PRO Men 41 42 40 Plus Men 4 4 3 Junior 4 8 9 Basic 0 0 1 Academy & Kidizinia 2 0 1 FT Female 23 4 0 PRO Female 3 4 0 Source: Company Total 126 112 102 CONFIDENTIAL
Slide 19: Quarterly Revenue & Net Income
Quarterly Revenue & Net Income Revenue (SAR million) # of Fitness 104 116 108 112 113 114 112 126 Key Messages: Centres EOP Increase in Q4 revenue & profitability due to: ramping-up impact of 9 new (4 male & 5 female) and 13 converted female 16% centers openings since Q4 LY. 14% 12 center open
Slide 20: FY 2018 P&L
FY 2018 P&L Key Messages: EOP center 126 112 Ave. center 113 109 `In MSR Net income higher by 3% vs. LY due to increase in number of operating centers and cost control measures. Increase / Statement of Profit or Loss FY CY FY LY % 2018 results included certain one-off items. These items include;
Slide 21: YoY COGS & SG&A
YoY COGS & SG&A COGS (SAR million) Key Messages: 5% increase in average COGS / center is mainly due to higher operational cost of female centers (15-20% higher female salaries vs. male counterpart), rising government levies and cost of outsourced cleaners & security guards (legal requirement for f
Slide 22: Net Income Bridge FY 2018
Net Income Bridge FY 2018 SR in Millions Key Messages: Excluding the impact of one – off items, adjusted Net Income would have been SR 210.7M. Growth was driven by company’s improved performance in the last 4 months of 2018. Excluding one-off items, Q4 net income would have been SR 69 M, being
Slide 23: Balance Sheet
Balance Sheet Total Assets (SAR million) Shareholders’ Equity and Debt (SAR million) Debt-to-Assets 0.3x 0.3x 0.3x CONFIDENTIAL 23
Slide 24: YoY Loans & Finance Charges
YoY Loans & Finance Charges Loans and Finance Charges (SAR million) Key Messages: YoY increase in loans to support center expansion. Approximate 50-60% split by managing the portfolio between floating & fixed rated borrowings. Weighted average cost of borrowings approximate 4.5%. With rising
Slide 25: Impact of New Accounting Standards in 2019
Impact of New Accounting Standards in 2019 IFRS 16 – Leases is effective from January 1, 2019, The new IFRS changes the accounting for Lease contracts and recognize Right of Use assets and corresponding Liability on the balance sheet. Impact on the statement of Financial position as of the app
Slide 26: Cash Generation & Returns
Cash Generation & Returns Cash Flow From Operations (SAR million) Cash flow / EBITDA 118% 101% 79% Dividend Declared and Pay-out (SAR million) * ** Dividend Ratio 60% 54% 54% * Last quarter dividend is paid in subsequent quarters when approved by the Board of Directors. ** Company continues to pay 6
Slide 27: FY 2018 Male & Female Segments
FY 2018 Male & Female Segments Female Centres made Material Contribution in 2018 Female Centres Openings Ave. Female Centres Performance Revenue and Gross Profit per centre (SAR million) Gross Margin, average 50% - 53% 28% - 36% CONFIDENTIAL 27
Slide 28: 3. Outlook FY 2019
3. Outlook FY 2019 CONFIDENTIAL 28
Slide 29: Outlook FY 2019
Outlook FY 2019 Tentative Guidance: Leejam 3.0 in full swing. No. of centres Growth 10-15% growth in revenues expected in 2019 on the back of: opening of 13-15 fitness centers (mainly female centers) 3 Conversions delayed from 2018 to be opened in Q1 of 2019. Ramp up growth from non-LFL ce
Slide 30: 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