Leejam Sports Co. · TADAWUL:1830
Leejam Sports — FY2020 Earnings Presentation
30 slides from Leejam Sports's earnings presentation, 2021
Slide 1: Fit for Growth - Investor Presentation FY 2020
FIT FOR GROWTH Investor Presentation FY 2020
Slide 2: 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 provided for g
Slide 3: Agenda
1 2 3 4 5 6 Executive Financial Outlook Overview COVID-19 Q&A Summary Performance FY 2020
Slide 4: 1. Overview
1. Overview
Slide 5: Vision, Mission, and Values
Vision, Mission, and Values Vision Mission Values Customer service excellence Responsibility Integrity Values Customer service excellence Innovation
Slide 6: Leejam Strategic Pillars
Leejam Strategic Pillars Unrivalled Focusing on our Class Leading Customer Growth Quality People Tech Experience Achieve recognition for Become the ‘Employer Increase the rate of expansion of our Build systems that guarantee Deliver a best-in-class our exceptional member of Choice’ that offers a clu
Slide 7: Business Model
Business Model VISION AND MISSION VISION THE VALUE WE To be the people’s favorite and most accessible wellness club. CREATE MISSION To steer society towards a healthy lifestyle SERVICES & INPUTS and encourage people to exercise daily FEATURES TRAINING MEMBERSHIP GROWTH AND CUSTOMER FINANCE • Cardio
Slide 8: Market Leader with Strong Scale Advantage
Market Leader with Strong Scale Advantage, Fitness Centres Evolution Strong geographical footprint with presence # of Fitness in 28 cities Centers Geographic Footprint (as of 31 December 2020) Arar (1) (131) ● ● Sakakah Hafr (1) Al Batin (5) ● Tabuk ● (1) (3) Ha’il ● (1) ● Buraydah ● Jubail Yanbu Sa
Slide 9: Financial Highlights
A Proud Saudi Brand & Largest Fitness center operator in the Region Financial Highlights 18M Visits in 2020 136 38 Introducing Revenue (IN SAR) Gross Profit (IN SAR) Operational Fitness Centers Female Centers as of, December 2020 X45 & GT Classes in Q4 (December 2020) With 2020 660M 129M Added 12 Ce
Slide 10: Write Off
Write Off During year 2020, Leejam Company’s management conducted comprehensive assessment for its sports and other equipment, spare parts and consumables items. The study included physical count for certain assets, determining the assets condition, evaluating the operational status and the potentia
Slide 11: Business Review
Business Review Corporate Wellness 2 1 Clubs 5 Clubs 30 1 Clubs Clubs 4 Club 51 40 Clubs 2 Clubs 51 Clubs Clubs
Slide 12: 2. COVID-19
2. COVID-19
Slide 13: COVID-19
COVID-19 Footfall Posts Lockdown Additional Cost & Cost Market Condition Financial Health Saving • Saudi Government • Rental waive and discounting requests • Holding to adequate cash of SR 258M at Announced Precautionary FOOTFALL POST LOCKDOWN submitted by Leejam to all Landlords resulted in end of
Slide 14: 3. Executive Summary
3. Executive Summary
Slide 15: Key Metrics
Key Metrics Gross Members Revenue Income EBITDA Net Income Count SAR 230 M 79 M 61 M (0.5) M 265K Active Member Q4 2020 Q4 2020 Q4 2020 Q4 2020 December 2020 (15%) (34%) (53%) (101%) (7%) 270 M 119 M 130 M 68 M 283K Active Member Q4 2019 Q4 2019 Q4 2019 Q4 2019 December 2019
Slide 16: 4. Financial Performance
4. Financial Performance
Slide 17: Revenue and Net Income – FY 2020
Revenue and Net Income – FY 2020 Revenue Key Messages: # of Fitness Centres 132 136 - new Male Centres 5 0 - new & Converted Female Centres 5 4 ❖ CY Revenue was 30% lower vs. LY, mainly due to: In M SR ▪ Impact of Covid-19 pandemic approx. SR 285M. (30%) ▪ Excluding the impact of Covid-19, revenue o
Slide 18: Revenue and Net Income – Q4 2020
Revenue and Net Income – Q4 2020 Revenue Ave. Revenue per Club Key Messages: 2.05 1.68 In MSR ❖ CY Q4 Revenue was 15% lower vs. LY Q4, mainly due to: ▪ Decline in subs. Income and impact of post covid-19 market conditions. 270 ▪ Provided that subs. Income and active members are declining 230 compare
Slide 19: QoQ Growth (SAR million)
QoQ Growth (SAR million) Revenue # of Fitness Centres 117 112 115 126 134 132 133 132 134 134 136 136 - new Male Centres 0 0 2 4 0 0 0 0 0 0 2 1 - new & Converted 1 5 2 10 3 1 0 1 2 2 4 2 Female Centres 300 2.5 2 1.9 250 1.8 1.8 1.7 1.7 2 1.6 1.6 1.6 200 1.5 1.5 1.5 150 267 225 217 219 238 230 1 100
Slide 20: Revenue Break-Down
Revenue Break-Down Revenue by Type Center Revenue by Brand (%, FY 2020) (%, FY 2020) FY 2020 Ladies Plus, 2, 0% (SAR million) (SAR million) FY 2020 UAE Ladies FT, 0, Ladies Express, Male Mnmgt, 0% 0, 0% 3, 0% 3, 0% UAE FT, 4, 1% 71, 11% 6, 1% Ladies Pro, 16, UAE Ladies PRO, 3% 1, 0% Male Express, 0,
Slide 21: Q4 Marketing Campaigns
Q4 Marketing Campaigns Campaign 2020 Vs 2019 Campaigns 3mo 6mo 12mo Days October SR.100 Gift Voucher + 2019 Added Value & Referral Campaign 21 SR.100 Gift Voucher SR.100 Gift Voucher (SR.500 for 12mo Only) 2020 October Campaign 16 10% 25% 40% November Gift Voucher (SR.500 for 2019 Added Value Campai
Slide 22: FY 2020 P&L
FY 2020 P&L SR M FY 2019 FY 2020 ∆ ∆% Revenue 944.9 659.6 (285.3) (30.19%) Key Messages: Cost of revenue 584.7 530.8 (53.9) (9.22%) Gross profit 360.2 128.8 (231.4) (64.24%) ❖ Revenue decline of SR 285M (30%) mainly due to closure of all Gross profit Margin 38.12% 19.53% (18.59%) (18.59%) clubs sinc
Slide 23: Q4 2020 P&L
Q4 2020 P&L SR M Q4 19 Q4 20 ∆ ∆% Revenue 270.2 230.2 (40.0) (14.80%) Key Messages: Cost of revenue 151.7 151.7 0.1 0.05% Gross profit 118.6 78.5 (40.1) (33.80%) ❖ Revenue decline of SR 40M (15%) mainly due to adverse Gross profit Margin 43.88% 34.09% (9.78%) (9.78%) market conditions post covid-19
Slide 24: COGS & SG&A
COGS & SG&A 700 4.4 5.0 4.0 COGS 4.5 Key Messages: 600 4.0 (SAR million) 500 3.1 3.5 400 3.0 ❖ 9% decrease in average COGS / center is mainly driven by: 2.5 ▪ Lower salaries and benefits (lower allowances and commissions), decrease in utilities, cleaning expenses, 300 2.0 200 1.5 consumables and sec
Slide 25: Loans & Finance Charges
Loans & Finance Charges Loans and Finance Charges (SAR million) 600 60 Key Messages: 52 53 500 50 ❖ YOY Increase in loans to support center expansion. ❖ Overall bank loan increased by SR 63M, however Cash 400 40 increased by SR 190M 300 30 ❖ Approximate 50-60% split by managing the portfolio between
Slide 26: Cash Generation
Cash Generation Cash Flow From Operations & Deferred Revenue (SAR million) 531 302 330 326 256 190 FY 2018 FY 2019 FY 2020 Cash Flow from Operating Activites Deferred Revenue
Slide 27: Male vs. Female Centres Performance
Male vs. Female Centres Performance Based on Q4 2020 performance Revenue and Gross Profit per centre (SAR million) % Gross Margin, average 20% 18% 4.9 4.9 1.0 0.87 Ave. Revenue Ave. GP Male Female
Slide 28: 5. Outlook FY 2020
5. Outlook FY 2020
Slide 29: 2021 Outlook
2021 Outlook No. of centres Growth Tentative Guidance: ❖2021 growth will be driven by: 20-22 ▪ Further opening of 26-30 Xpress Clubs ▪ Further opening of 2-4 female centers 0-2 1-3 ▪ Continuing LFL growth and ramp up of non-LFL & new 163-171 centers 6-8 ▪ Expanding corporate & PT business 149 151 ▪
Slide 30: Thank you - Q&A
Thank you 6. Q&A