Leejam Sports Co. · TADAWUL:1830
Leejam Sports — H1 2023 Earnings Presentation
24 slides from Leejam Sports's earnings presentation, October 2023
Slide 1: Earnings Presentation 1H 2023
—_—— aL Lee EARNINGS PRESENTATION 1H 2023
Slide 2: Table of Contents
TABLE OF CONTENTS |. DISCLAIMER 3 Il. COMPANY'S PROFILE & OVERVIEW 4 Ill FINANCIAL PERFORMANCE 9 IW. OUTLOOK 2022 a LezUAM
Slide 3: 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 subscribe for
Slide 4: Company's Profile & Overview
Slide 5: Vision, mission and values
To be the people’s favourite and most accessible wellness club. To steer society towards a healthy lifestyle and encourage people to exercise daily. • Customer service excellence • Integrity • Responsibility • Collaboration • Innovation
Slide 6: Company Profile & Overview: fitness brands
Company Profile & Overview Leejam currently operates the following fitness brands: Leejam aims to offer a winning solution to the masses; an easily affordable and accessible fitness centre that allows users to access market leading facilities, with different sizes, locations, products and services t
Slide 7: Company Profile & Overview: segments and key figures
Company Profile & Overview Female Segment Male Segment Item (SAR M) Q2 2023 H1 2023 Revenue 69K 47 221K 116 301.8 578.7 Gross profit 124.2 232.9 Operating Profit 91.2 168.9 EBITDA 153.4 290.5 Net Profit Members Centers 72.5 135.1 Members Centers Cash and cash equivalents 100.4 100.4 Corporate Segmen
Slide 8: Acquisition of Al-Tatheer Sports Company (Tsports)
Company Profile & Overview • Leejam acquired a 100% of Al-Tatheer Sports Company (Tsports) for total transaction value of SR 12 million, Through its investment subsidiary, on 14 June 2023. • Tsports operates 10 studios: 5 ladies, 4 men and 1 kids. The 2022 Tsport Revenue is SAR 19.5 million. • The t
Slide 9: Member Count Movement
Financial Performance Male Female Member Count Movement 176 K 221 K 69 K 53 K • Memberships grew at end of Q2 2023 by 34% compared to the end of Q2 2022 level. 30-Jun-22 30-Jun-23 30-Jun-22 30-Jun-23 • The company's business is historically affected by seasonality, as the winter season is considered
Slide 10: Financial Performance
Slide 11: Q2 2023 Revenue, Gross Profit, EBITDA, Net Profit
Financial Performance Revenue Gross Profit 140.0 80% Revenue 120.0 75% 124.2 • Grew by 30% driven by volume as a result of adding 12 new 301.8 70% 100.0 65% centers since Q2 2022, focused approach as well as 60% continuing the refurbishments program of existing centers. 233.0 80.0 78.0 55% 60.0 50%
Slide 12: 1H 2023 Revenue, Gross Profit, EBITDA, Net Profit
Financial Performance Revenue Gross Profit 250.0 80% Revenue 232.9 75% • Grew by 25% driven by volume as company added 12 new 200.0 70% 578.7 65% centers since Q2 2022 as well as continuing the 150.0 163.8 60% refurbishments program of existing centers. 464.6 55% 100.0 50% 40% 45% Gross Profit 50.0
Slide 13: Current Assets, Cash, Current Liabilities and Loans
Financial Performance Current Assets Cash and Cash Equivalents Current Assets Increased by 105% mainly due to the increase in Cash. 362.2 281.4 Cash and Cash equivalents Increased by 180% mainly driven by higher subscriptions sales during the period. 176.6 100.4 Current Liabilities Increased by 16%
Slide 14: Cash Flow from Operations, Investing and Financing
Financial Performance Cash Flow from Operation Investing Cash Flow Cash Flow from Operations Increased by 29% mainly due to increase in profit. 237.5 89.7 85.7 184.0 Investing Cash Flow Increased by 5% mainly driven by the acquisition of Al Tatheer Sports Company. Cash Flow from Financing Decreased
Slide 15: Revenue per center and Net Income per center
Financial Performance 400.0 2.5 2.2 350.0 2.0 1.9 1.9 1.8 1.8 1.8 1.7 1.7 2.0 1.7 Revenue per center 1.7 1.7 300.0 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.5 • 20% higher compared to Q2 2022, mainly due to high 250.0 1.5 number of members driven by additional centers. 200.0 1.1 • We expect revenue per center t
Slide 16: Key Highlights: Q2 costs
Financial Performance 200 1.1 1.2 1.0 Key Highlights: 180 178 1.0 160 COR & COR/Center 140 155 0.8 • Overall cost of revenue increased by 15% which was due to 120 the additional (under ramp up) 12 centers compared to Q2 100 0.6 2022. 80 0.4 COR per center increased by 6% due to the increase in 60 •
Slide 17: Key Highlights: 1H costs
Financial Performance 400 2.5 2.2 Key Highlights: 350 2.0 346 2.0 COR & COR/Center 300 301 • Overall cost of revenue increased by 15% which was due to 250 1.5 the additional (under ramp up) 12 centers. 200 COR per center increased by 7% due to the increase in 1.0 • 150 maintenance, repair, and clean
Slide 18: Key Highlights: cash flow and deferred revenue
Financial Performance 400 0.9 x Key Highlights: 0.8 x 0.8 x 350 373 0.8 x Cash Flow from Operations: Increased by 29% due to higher subscription sales. 300 0.7 x 290 0.6 x 250 237 0.5 x Deferred Revenue: 200 Increased by 28% as result of the increase in subscriptions sales. 184 0.4 x 150 0.3 x 100 0
Slide 19: Outlook 2023
Slide 20: Outlook
Outlook 2023 growth will be driven by: • Further openings of Xpress Centers • Further openings of Big Box centers • Continuing focus/growth on Corporate & PT business • Cost control, and improving customer experience, member retention & services. Expected Centers Current (Centers) Expected CAPEX (Ra
Slide 21: Investor Relations contact
For enquires, please contact the Investor Relations Department at: [email protected]
Slide 22: Appendix
Slide 23: Statement of Profit & Loss
Appendix Statement of Profit & Loss Statement of Profit & Loss SR M Q2 2023 Q2 2022 ∆ ∆% SR M 6M 2023 6M 2022 ∆ ∆% Revenue 301.8 233.0 68.8 29.52% Revenue 578.7 464.6 114.1 24.56% Cost of revenue (177.6) (154.9) (22.6) 14.61% Cost of revenue (345.8) (300.8) (45.0) 14.96% Gross profit 124.2 78.0 46.1
Slide 24: Segment Analysis and Source Analysis
Appendix Q2 2023 7, 2% Segment Analysis • Male revenue increased by 27% compared with Q2 2022. 33, 11% • Female revenue increased by 38% compared with Q2 73, 24% 2022. Source Analysis • Subscriptions and Membership revenue increased by 32% compared with Q2 2022. • Personal Trainer revenue increased