Leejam Sports Co. · TADAWUL:1830
Leejam Sports — FY2023 Earnings Presentation
28 slides from Leejam Sports's earnings presentation, March 2024
Slide 1: Earnings Presentation Q4 & FY 2023
Earnings Presentation Q4 & FY 2023
Slide 2: Disclaimer
DISCLAIMER All information included in this document is for general use only and has not been independently verified, nor does it constitute or form part of any invitation or inducement to engage in any investment activity, nor does it constitute an offer or invitation or recommendation to buy or su
Slide 3: Executive Summary
Executive Summary
Slide 4: Executive summary
Exe c u t ive s u m m a ry Led by its Core, Leejam ended 2023 with a record revenue & YE membership numbers resulting in double digits growth in GP, EBITDA & Net Profit. 398 1,325 192 585 154 450 222 703 xxx 595.5 458.9 686.3 xxx Q4 1,325 FY Q4 FY xxx Q4 FY xxx Q4 FY Q4 2023YE 7 6 Q4 2023YE Revenue
Slide 5: During 2023, Leejam grew its FT centers and ventured into new segments
Executive summary During 2023, Leejam grew its FT centers and ventured into new segments, with a focus on members engagement 33 +20 27% 34M Additional Centers & Renovated centers Ave. Monthly Member Total Visits Studios Growth +186K +56k +1.2M 87% YOY Increase YOY Increase YOY Increase Member Satisf
Slide 6: Leejam operates in the sports and wellness industry
Executive summary Leejam operates in the Sports and wellness industry providing comprehensive fitness and wellness services to its customers through multiple entities. Leejam Sports Company Leejam’s Investment Arm Fitness Time Padel X T Sport Physiotherabia 51% Ownership 100% Ownership 50% Ownership
Slide 7: Leejam unique ecosystem builds synergies and competitive advantage
Executive summary Leejam unique ecosystem allows it to build on available synergies to ensure competitive advantage, future growth and margins protection +174 +13 +34 +36 +138 +138 Gyms Concept Studios & Football Pitches Volleyball Courts Swimming Pools Excises Studios Within Gyms Academes Group +96
Slide 8: Fitness Time is Leejam's core in an underpenetrated market
Executive summary Fitness Time offerings is Leejam’s core, which operates in an underpenetrated market, with great growth potential 396 K 306 K 90 K + 314K Members Male Scheduled Classes Female +716 K PT sessions +3 M GX Attendance 138 Big box Centers 36 Xpress Centers KSA UAE 174 166 Centres 8 Cent
Slide 9: Leejam investment arm diversifies its offering
Executive summary Leejam investment arm, allows it to diversify its offering and add to its competitive advantage • 51% incorporation-subsidiary • In-Club Solutions/ Stand Alone studios • 16 Courts operational by end • Distribution Franchise rights 2023 Agreement for 10+ countries • The prjecet stil
Slide 10: Network Expansion & Members Trend
Network Expansion & Members Trend
Slide 11: Centers Opened & Closed during 2023 and Project Pipeline
Network Expansion & Members Trend Center Opened & Closed during 2023 and Project Pipeline Refurbished Centers Centers Movement 33 total additional centers, concept studios and academies, the highest additions in company’s history. This was delivered though organic roll out and acquisitions. 20 Refur
Slide 12: Membership numbers continue growth with record sales in 2023
Network Expansion & Members Trend Memberships numbers continue its growth with record sales in 2023, while QoQ seasonality still seen Subscription Sales • 3 Months Sub. duration still make up more than 50% of subscriptions value. • During 2023, Leejam introduced 2 new subscriptions product (4 months
Slide 13: 2023 Financial results
2023 Financial results
Slide 14: Record Q4 revenue and highest net margin
2023 Financial results With record revenue in Q4, the company achieved the highest net margin high after 3 consecutive quarters of growth Revenue Revenue Gross Profit Gross Profit Margin • Revenue grew by double-digits, driven by growth from the membership and subscription revenue, led by the increa
Slide 15: Highest revenue ever; FY 2023 margins at record high
2023 Fin a n c ia l re s u lt s With the highest revenue ever in Q4, FY 2023 Margins achieved a record high following 3 consecutive quarters of growth Gross Profit Gross Profit Margin Revenue • Revenue grew by double-digits, driven by growth from the Revenue membership and subscription revenue, led
Slide 16: Expanding member growth boosting revenue and net income
2023 Fin a n c ia l re s u lt s Expanding growth of members significantly boosting our revenue and net income Revenue per center Higher results comes mainly due to higher number of members, We expect revenue per center to decrease as Xpress Centers get more weight since it generate lower revenue com
Slide 17: LFL centers growing at double-digit rate
2023 Financial results LFL centers growing at a double digit's rate, with new centers ramping up faster than last year Revenue of LFL Centers 2022 2023 9.28 11% LFL Revenue per Center • 'LFL’ centers are performing well with steady growth. 8.39 Revenue Breakdown by Source • Membership revenue increa
Slide 18: COR increased as investment in quality and refurbishment continues
2023 Financial results COR increased as investment in quality of services and 2023 CapEx refurbishment program continues 2023 CAPEX Capital work in progress New clubs The company doubled its CapEx in 2023 compared to 2022 27% 37% as it continue rolling out new centers and refurbishing its old estate
Slide 19: Strong financial position, solid returns, and low leverage
2023 Financial results Strong financial position, solid returns, and low leverage Deferred revenue 12% 444 396 • The increase in deferred revenue of 12% came as result of the company focus efforts and the consistent growth in membership numbers observed across all segments. • The decrease in cash an
Slide 20: Strong cash generation with positive FCF
2023 Financial results Strong cash generation with positive FCF Cash Flows FY 2023 Free Cash Flow = 307 Solid Operating Cash Flows: Financial Stewardship: The company demonstrated a strong operational performance with a With free cash flows of 307 million, the company was able to partially fund its
Slide 21: Segment performance
Segment performance
Slide 22: Female segment maturing and male segment continues growth
Segment performance Female segment improving matures and male Male Segments segment continues its growth 2022 2023 Male Segment • Male segments continue to be the dominant segment and ending 2023 with 23% revenue growth. 997 • The segment GP increased by 30% to SR 455 million in 2023. 808 Female Seg
Slide 23: Outlook
Outlook
Slide 24: Tentative Guidance and Projects Pipeline
Outlook Tentative Guidance 2024 growth will be driven by: • Further growing LFL and & Non LFL Centers • Improving customer experience, member retention & services • Further openings of Xpress & Big Box centers Projects Pipeline as of 2023YE • Continuing focus/growth on Corporate wellness & PT busine
Slide 25: Q&A
Q&A For enquires, please contact the Investor Relations Department at: [email protected]
Slide 26: Appendix
Appendix
Slide 27: Q4 2023 P&L and YE 2023 P&L
Appendix Q4 2023 P&L YE 2023 P&L SAR M Q4 2023 Q4 2022 Change Change % SAR M YE 2023 YE 2022 Change Change % Revenue 398 337 62 18% Revenue 1,325 1,066 260 24% Cost of revenue (206) (174) (32) 18% Cost of revenue (740) (632) (103) 16% GROSS PROFIT 192 163 29 18% GROSS PROFIT 585 434 157 36% General
Slide 28: Thank You
— zaL_/ Lees Thank You