Leejam Sports Co. · TADAWUL:1830
Leejam Sports — Q1 2021 Earnings Presentation
25 slides from Leejam Sports's earnings presentation, 2021
Slide 1: Leejam Sports Company Investor Presentation Q1 2021
Leejam Sports Company Investor Presentation Q1 – 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, Our Mission, 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 – Operational & Financial
Key Highlights — Operational & Financial Q1 2020 Q1 2021 STATEMENTOF OPERATIONS DATA Q1 2021 Q1 2020 Change % Revenue SAR 149M SAR 198M (25%) FEMALE Gross profit SAR 27M SAR 52M (48%) Members Operating Profit EBITDA SAR 5M SAR 21M (76%) 250K 57K 46K SAR 55M SAR 71M (23%) Total members at the end of
Slide 8: 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 9: Business Model (Continued)
Business Model (Continued) The Facilities Leejam’s Value Creation Services and Features • Half Olympic Sized Pools • Jacuzzi • Membership growth, retention and loyalty • Cardio • Sauna • Sustainable returns for shareholders • Strength • Steam • Steering society towards a healthy lifestyle • Personal
Slide 10: Strategy
Strategy Growth Leejam has carefully crafted its 3 year strategy to enable the Company To increase the rate of expansion of fitness centres to continue its upwards trajectory built on rapid growth, expansion, through • Traditional new clubs diversification and evolution. Every step of the Company’s
Slide 11: 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 ensure structure and To lead by example To manage business performance process • Portray the
Slide 12: 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 13: 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 14: Locations
KSA Locations 131 Centers UAE 5 Centers No. of Centers 2 50 35 4 0 31 7 1 Corporate Wellness = 1 Club 14
Slide 15: Financial Performance
Financial Performance
Slide 16: Profitability – Q1 2021
Profitability – Q1 2021 Revenue Gross profit (24.9%) (47.4%) 197.7 52.0 148.5 27.4 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Operating income Net income EBITDA (78.1%) (22.0%) 6.2 70.6 20.9 55.1 (7.0) 4.6 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 16
Slide 17: QoQ Growth
QoQ Growth Revenue 3 0 2 .5 1.9 2 1.8 1.7 1.8 1.7 2 5 0 2 1.5 1.6 1.6 1.6 2 0 1.5 1.1 1 .5 267 1 5 0 225 217 219 238 230 210 210 1 1 0 177 187 196 149 0.2 0 .5 5 0 0 24 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Revenue Revenue per cente
Slide 18: Revenue Break-Down Q1 2021
Revenue Break-Down Q1 2021 Fitness Time - Ladies Fitness Time Xpress, PT, 16, 11% Rental, 1, 1% Plus, 1, 1% 1, 0% Fitness Time - Ladies Q1 2021, Other Male Mnmgt, 2, 2% Pro, 3, 2% Service, 0, 0% Fitness Time - Ladies Xpress, 0, 0% Fitness Time - Ladies, 28, 21% Corporate, 2, 1% Individual Membership
Slide 19: Q1 2021 P&L
Q1 2021 P&L SR M Q1 2021 Q1 2020 ∆ ∆% Q1 2019 ∆ ∆% Key Messages: Revenue 148.5 197.7 (49.1) (24.9%) 219.7 (71.2) (32.4%) Cost of revenue (121.2) (145.7) 24.5 (16.8%) (142.2) 21.0 (14.8%) Revenue decreased by SR 49.12million representing 24.85% due to Gym Gross profit 27.4 52.0 (24.6) (47.4%) 77.5
Slide 20: COGS & SG&A
COGS & SG&A COGS COGS/Center 1 6 0 1 .2 1 4 0 1 .1 1 2 0 1.1 1.1 1 .1 Key Messages: 1 0 1 .0 15% decrease in average COGS / center is mainly driven by: 8 0 Lower in salaries and related benefits by 11.25 million representing 22.38%, Decrease in operational expenses such as cleaning and 1 .0 6 0
Slide 21: Loans & Finance Charges
Loans & Finance Charges Loans Finance Charges 5 0 1 6 4 9 0 14 1 4 4 8 0 13 1 2 Key Messages: 4 7 0 4 6 0 12 Overall bank loan decreased by SR 15M, however Cash increased by SR 86M Approximate 50-60% split by managing the portfolio between floating & fixed 1 0 4 5 0 rated borrowings. Weighted
Slide 22: Cash Generation
Cash Generation 3 5 0 Cash Flow from Operating Activites Deferred Revenue Cash flow/EBITDA 1 2 0 % 113% 3 0 102% 1 0 % 2 5 0 8 0 % 75% 2 0 6 0 % 1 5 0 4 0 % 1 0 2 0 % 5 0 41 321 72 326 111 302 0 0 % Q1 2021 Q1 2020 Q1 2019 22
Slide 23: Male vs. Female Centres Performance
Male vs. Female Centres Performance Ave. Revenue Ave. GP % Gross Margin, average 22.1% 7.2% 1.2 0.3 1.0 0.1 Male Female 23
Slide 24: 2021 Outlook
2021 Outlook
Slide 25: 2021 Outlook
2021 Outlook Tentative Guidance: Current Expected (Range) 2021 growth will be driven by: Category 31-Mar-21 31-Dec-21 • Further opening of 26-30 Xpress Clubs • Further opening of 2-4 female centers Female - Xpress 1 3 to 5 • Continuing LFL growth and ramp up of non-LFL & new centers Female - Big Box
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