Leejam Sports Company Investor Presentation FY 2019
Table of Contents 1 Company Profile 2 Board Members 3 Financial Performance 4 Outlook FY 2020 5 Q&A
Ministry of Sports announce the closure of Private Gyms and Sports Centers Referring to Ministry of Sport Announcement of the suspension of sports activity in the Kingdom with various sports, all tournaments and competitions, as well as the closure of private sports centers and studious effective Sunday 15th of March 2020 until further notice as necessary preventive measures to prevent the spread of the coronavirus (COVID-19) in order to preserve the health of citizens and residents of Saudi Arabia, Leejam Sports Company (Fitness Time) (“the Company”) announces to its valued shareholders that all its sports centers in Saudi Arabia have been closed effective Sunday 15 March 2020 until further notice. The company will continue, through various means of communication, to raise sports and health awareness and encourage exercising from home. The company is in the process of evaluating the financial impact of the closure of its Centers. Any further developments in this regard will be announced later. Our Best wishes for health and wellness for all. CONFIDENTIAL 3
Impact of Corona Virus on LEEJAM • Holding on to Cash Cashflow • Delay Non-Critical Expenses and CAPEX • Continue payment to our employees Our • Free Freeze until further notice • Exercise from home Customer • Online content being develop Our • Travel Ban for Employees • Strict Quarantine for employees returning from vacation Employees • Work from Home CONFIDENTIAL 4
1 Company Profile
Largest Fitness center operator in the Region An indigenous and localized Proud Saudi Brand 25% Active Female 283K 132 Member 31 Female Centers as of, Dec 2019 Operational Fitness As at Dec 2019 Centers (December 2019) Added 67K (net) Added 10 Centers during 2019 during 2019 CONFIDENTIAL 6
Key Metrics Revenue Net Income 180 SAR 942 SAR 800 SAR 206 SAR FY 2018 FY 2019 FY 2018 FY 2019 18% Growth 14% Growth Net Income EBITDA 69 SAR 55 SAR 470 SAR 313 SAR Q4 2018 Q4 2019 FY 2019 FY 2018 26% Growth 50% Growth Members Count Corporate 283K 217k 280+ 41K Active Member Active Member Corporate Corporate Dec 2018 Dec 2019 Customers Members 30% Growth CONFIDENTIAL 7
Participated in Fitness Events in 2019 Swimming Championship Winter Football Championship Basketball 3x3 Championship Extreme FT Championship Ramadan Challenge Strongest man Championship Tahadi event Extreme FT Championship Championship Billiards Championship Walking is healthy event National Day event Partnership with Amir Khan
Fitness Time won the Fitness Brand of the year across the region
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 plans to promote a healthier lifestyle among its Prevalence of diabetes 17% 21% 19% citizens with a goal of increasing the participation Prevalence of hypertension - hypertensive (2013) 18% 13% 15% rate in sports or physical activity among citizens Prevalence of hypertension - borderline (2013) 47% 34% 41% from 13% in 2016 (men 20% and women 7%) to Prevalence of high cholesterol - hypercholesteraemic (2013) 10% 7% 9% 20% by 2020 and 40% by 2030. Prevalence of high cholesterol - borderline (2013) 20% 21% 20% Source: World Health Organisation, International Diabetes Federation, NCBC Research Healthcare spending to drive fitness sector growth The government’s expenditure on healthcare has 16.4% 15.4% 15.5% 18.0% increased over the past few years at a CAGR of 150 10.7% 9.5% 9.5% 9.1% 8.9% 16%. 8.6% 100 8.0% 50 Saudi has a young population, with c70% of the 61 71 78 82 80 96 159 174 167 0 -2.0% population currently under the age of 40 years. This is accompanied by relatively high purchasing 2012 2013 2014 2015 2016 2017 2018 2019 2020 power (including females) and a general move Healthcare expenditure Healthcare as % of total spending towards healthier lifestyles. Favorable demographic outlook to drive demand for fitness industry 22 33 40 Leejam’s Mission Statement is to “Steer Society Towards Healthy 4% 6% 12% Lifestyle and Encourage People to Exercise Daily.” 15% 25% 30% 35% 37% We are focused on providing value to the community, and this is a 30% core KPI for every facility that we operate across our expansive 46% 32% 28% network. 2002 2017 2032 0-19 20-39 40-59 `+60 NCBC research report CONFIDENTIAL 10
Diverse Brand Portfolio to Serve the Market Male Brands Female Brands Other Brands CONFIDENTIAL 11
Key Milestones - Start Planning - Leejam Sports - Introduction of - Listing of 30% - Investcorp - The Company Phase Company is Fitness Time shares on acquires 25.1% opens its 100 th - First “Fitness established and Plus and Tadawul (IPO) stake in Leejam fitness centre Time” center acquires the Fitness Time in September - Ranked in opens in Tabuk Fitness Time Junior brands Global “Top 2018 brand - Ranked 15 th in 25” by IHRSA global top 25 by IHRSA 2005 2008 2010 2013 2016 2018 2007 2009 2011 2015 2017 2019 - Fitness Time - First “Fitness - Introduction - The - Intro of PT won the Fitness - Launch of Time” of Fitness Time Company - UAE launch Brand of the standalone Pro category female fitness opens its - Exclusive year across the centers concept opens 50th fitness partnership with region in Jeddah center FC Barcelona - MBR Award for Sports Creativity CONFIDENTIAL 12
Leejam Strategy OUR VISION.. To be the People's favorite and most Core Values.. accessible Wellness Club OUR MISSION.. To steer society towards a healthier lifestyle and encourage people to exercise daily. CONFIDENTIAL 13
Leejam Strategic Pillars Our Strategic Pillars Unrivalled Focusing Class Customer on our Leading Growth Quality Experience People Tech CONFIDENTIAL 14
Market Leader with Strong Scale Advantage Strong geographical footprint with presence in 28 cities Geographic Footprint Fitness Centres Evolution (as of 31 December 2019) Arar (128) (1) ● ● Hafr Sakakah (4) Al Batin (1) ● (1) ● Tabuk Ha’il ● (3) ● Jubail (1) ● Buraydah Yanbu (4) Saihat ● (2) (2) Madinah ● Unaizah (1) Ras Al Khaimah ● ● (7) (2) (1) ● Dammam ● Dawadmi Ajman ● (6) Dubai (1) (1) Al Hasa ● (1) ● ● (2) Makkah ● Riyadh Al-Khobar ● (5) (6) (47) * 135 ● 129 ● ● Al Kharj Jeddah ● Ta’if (1) (28) ● Al Baha (2) 132 (1) 126 112 102 91 # of Fitness 71 ● K. Mushait Centers ● (2) ● Jizan Abha (1) ● Najran (1) 2014 2015 2016 2017 2018 2019 (1) Source: Company * As of 31 December 2019, 3 centers are currently closed for conversion to female centers. CONFIDENTIAL 15
Segmented Concept, Recognised Brand (1/3) Key Features Females Females Females Males Males Males Male Targeted at (age) 25yrs+ 16yrs+ 16yrs+ 25yrs+ 16yrs+ 16yrs+ Junior # of Fitness Centres 1 – KSA 1 24 5 2 50 40 3 # of Fitness Centres 1 – UAE - 1 2 0 - - 1 12-month Price (SAR) 2 8,925* 4,988* 3,255* 3728* 8,925* 4,988* 3,255* Facilities ✓ ✓ ✓ ✓ ✓ ✓ ✓ Cardio ✓ ✓ ✓ ✓ ✓ ✓ ✓ Strength ✓ ✓ ✓ ✓ ✓ ✓ ✓ Swimming Pool ✓ ✓ ✓ ✓ ✓ ✓ - Jacuzzi, Sauna, Steam ✓ ✓ ✓ ✓ ✓ ✓ ✓ Courts ✓ ✓ ✓ ✓ - - - Squash ✓ ✓ ✓ - - - - Towels, slippers, etc. ✓ ✓ ✓ ✓ - - - Business Centre ✓ ✓ ✓ ✓ - - - Lounge and other amenities Apart from above, the Company has 3 Corporate wellness & 1 Kidzenia (for kids). Total 132 locations. 1 As of 31 December 2019 2 Standard prices as of 31 December 2019 * VAT Inclusive CONFIDENTIAL 16
Segmented Concept, Recognised Brand (2/3) State-of – art Spacious Facilities with a Customized Service Offering ▪ ▪ Available in each center to assist Competitions and tournaments with equipment use, fitness organised on a regular basis for Special Floor members regime etc. Events Trainers ▪ ▪ Over 13k participants in 2019 >1100 Floor Trainers in the across 10+ sports events current network ▪ New home-grown concepts ▪ 1-on-1 coaching from a qualified introduced instructor New Exercise Personal - eXtreme Fitness ▪ Available in 98 centers, with over Concepts Training - eXtreme Boxing 214 Personal Trainers - eXtreme Bootcamp ▪ 47% revenue growth vs. LY - HIIT ▪ Diverse GX programming available across the network; >20 different class types Industry- Group ▪ Leading 209K GX classes in 2018, 3.4M Classes Attendees Equipment ▪ Growth of 28% GX classes / Month and 44% in number of Attendees 1 as of 31 of December 2019 CONFIDENTIAL 17
Recommend
More recommend
