Leejam Sports Company Investor Presentation H1 2019 Table of - PowerPoint PPT Presentation

Leejam Sports Company Investor Presentation H1 2019

Table of Contents Page 1. Company Profile 3 2. Board Members 20 3. Financial Performance 22 4. Outlook FY 2019 38 5. Q&A 41 CONFIDENTIAL 2

1. Company Profile CONFIDENTIAL 3

Largest Fitness center operator in the MENA Region An indigenous and localized Proud Saudi Brand 134 incl. 30 female 244k Operational Fitness Centers Active Members (30 June 2019) (30 June 2019) Added 10 centers in H1 2019 Added 27k members (net) in H1 2019 18% 9 th Female members of total member base Largest Fitness Chain in the World (in terms of (30 female centers as of 30 June 2019) number of members) Among IHRSA’s Global Top 25 1 Source: International Health, Racquet & Sportsclub Association (IHRSA) CONFIDENTIAL 4

Other Key Metrics 72M SAR 436M SAR 365M SAR 89M SAR Net Income Revenues Revenues Net Income (H1 2018) (H1 2019) (H1 2018) (H1 2019) 20% growth 23% growth 213M SAR 49.5M SAR 136M SAR 39.7M SAR Net Income EBITDA EBITDA Net Income (Q2 2019) (H1 2019) (H1 2018) (Q1 2019) QoQ growth 25% 56% growth on reported basis 275+ 98k GX classes in H1 48k 1.5M attendees Corporates as Corporate Members Growth from Dec LY Customers Approx. - GX Classes / month 32% - Attendees 46% CONFIDENTIAL 5

Participated in 10 Fitness Events in H1 2019 Basketball Championship Extreme FT Championship Strongest Man Championship Football Championship MOH event CONFIDENTIAL 6

Participated in 10 Fitness Events in H1 2019 Partnership with Amir Khan Swimming Championship Squash Championship Tahadi event Walking is healthy event Swimming for children CONFIDENTIAL 7

Macro KSA Environment Government initiatives aim at supporting the health and fitness sector Indicator Male Female Total As part of the Vision 2030, the Saudi Government Prevalence of obesity 31% 42% 34% 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 20% by 2020 and 40% by 2030. Prevalence of high cholesterol - hypercholesteraemic (2013) 10% 7% 9% 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 increased over the past few years at a CAGR of 16%. Saudi has a young population, with c70% of the population currently under the age of 40 years. This is accompanied by relatively high purchasing power (including females) and a general move 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 25% Lifestyle and Encourage People to Exercise Daily.” We are focused on providing value to the community, and this is a core KPI for every facility that we operate across our expansive network. NCBC research report CONFIDENTIAL 8

Diverse Brand Portfolio to Serve the Market Male Brands Female Brands Other Brands EXPRESS CONFIDENTIAL 9

Key Milestones - Start Planning - First “Fitness - Introduction of - The Company - Investcorp - Launch of - Intro of PT Phase Time” Fitness Time opens its 50th acquires 25.1% - UAE launch female fitness - First “Fitness standalone Pro category fitness center stake in Leejam centers - Exclusive Time” center concept opens partnership with opens in Tabuk in Jeddah FC Barcelona - MBR Award for Sports Creativity 2017 2007 2009 2011 2013 2015 2005 2008 2012 2014 2006 2010 2016 2018 - Listing of 30% - Introduction of - Leejam Sports - The Company shares on Company is Fitness Time opens its 100 th Tadawul (IPO) established and Plus and fitness centre in September acquires the Fitness Time - Ranked in 2018 Fitness Time Junior brands Global “Top 25” - Ranked 15 th in brand by IHRSA global top 25 by IHRSA CONFIDENTIAL 10

Leejam 3.0 Goal: To be Top 10 Fitness Company in the World and be Employer of Choice in KSA 6 Key Pillars to achieve Leejam 3.0 Enhance Customer Open Door in the next 3 years Policy Experience Invest In Improved Corporate Our People Governance Grow & Leverage Exceed Shareholders Technology Expectations CONFIDENTIAL 11

Market Leader with Strong Scale Advantage Strong geographical footprint with presence in 29 cities Geographic Footprint Fitness Centres Evolution (as of 30 June 2019) Arar (130) (1) ● ● Hafr Sakakah (4) Al Batin (1) (1) ● ● Tabuk ● Ha’il (3) ● Jubail (1) ● Buraydah Yanbu (4) Saihat ● (2) (2) Madinah (1) Ras Al Khaimah ● Unaizah ● ● (7) (1) (2) Dammam ● ● Ajman Dawadmi ● (6) Dubai (1) (1) Al Hasa ● (1) ● ● * (2) Makkah Al-Khobar ● Riyadh ● (7) (5) (48) ● ● ● # of Fitness Al Kharj Jeddah ● Ta’if (1) (28) Centers ● Al Baha (2) (1) ● K. Mushait ● (2) Jizan ● Abha (1) ● Najran (1) (1) Source: Company * 3 centers are currently closed for conversion to female centers. CONFIDENTIAL 12

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 - 24 5 # of Fitness Centres 1 – KSA 3 50 41 4 - - 1 # of Fitness Centres 1 – UAE - 1 2 0 8,925* 4,988* 3,255* 12-month Price (SAR) 2 8,925* 4,988* 3,255* 3728* Facilities        Cardio        Strength        Semi Olympic Pool    -    Jacuzzi, Sauna, Steam        Courts   - -   - Squash  - - -  - - Virtual golf  - -   - - Towels, slippers, etc.   -   - - Business Centre   -   - - Lounge and other amenities Apart from above, the Company has 2 Corporate wellness & 1 Kidzenia (for kids). Total 134 locations. 1 As of 30 June 2019 2 Standard prices as of 30 Jun 2019 * VAT Inclusive CONFIDENTIAL 13

Segmented Concept, Recognised Brand (2/3) State-of–art Spacious Facilities with a Customized Service Offering  Available in each center to  Competitions and tournaments assist with equipment use, organised on a regular basis Floor Special for members fitness regime etc. Events Trainers  Over 11.5k participants in H1  >1100 Floor Trainers in the current network 2019 across 10+ sports events  New home-grown concepts  1-on-1 coaching from a introduced in 2017 qualified instructor, launched in New Exercise Personal - eXtreme Fitness 2015 Concepts Training - eXtreme Boxing  Available in 92 centers, with - eXtreme Bootcamp over 214 Personal Trainers - HIIT (under pilot)  Diverse GX programming available across the network; Industry- >20 different class types Group Leading Classes  28 GX classes / week for Male Equipment centers & 49 GX classes / week for Female centers 1 as of 30 of June 2019 CONFIDENTIAL 14

Segmented Concept, Recognised Brand (3/3) Corporate Business  The Company delivers services to corporate partners under the Fitness Time Wellness umbrella  Fitness Time is an attractive partner for large corporate clients given its country wide footprint in 29 cities in KSA & UAE  Opportunity to enhance corporate business by targeting female employees  Further opportunity as companies seek to rollout corporate wellness programs  Latest initiatives included partnerships with Ministry of Health, Labor & Civil services and Public Pension Fund. Key Statistics Number of corporates Number of corporate Corporate Revenue as B2B and B2C clients members (H1 2019, SAR) SAR 63.2M (June 2019) (June 2019) SAR 60.5M 275+ 48,000 Approx. (H1 2018, SAR) CONFIDENTIAL 15

Performance since IPO (Sept 2018) Net Income ACCOLADES: (SAR million)  Consecutive growth in results post IPO LY on Sept 10, 2018.  Leejam 3.0 in place with 6 key pillars.  Opening of 23 centers over last 10 month (17% of our entire portfolio since 2005).  New initiatives include launch of GEMs program, WWYB (we want you back), summer initiatives (swimming for children, bring your teens), mobile application (launched April end CY) etc.  brought back 37.5k members in H1 2019 (SR 45M Subs. income) through WWYB  1,880 units sold through mobile app. since launch  Focus on YoY expansion with opening of ave. 15 centers each year (in particular female centers).  Focus on social and digital media.  Gradually improving the realized prices, lower campaign days and more long term membership mix.  Enhancing customer experience and growing member base. CONFIDENTIAL 16

Other Significant Accolades Cover page story by CBI “IHRSA” magazine on LEEJAM 3.0 in April 2019 issuance & Article coverage in CEO magazine by Khaleej Times CONFIDENTIAL 17

Other Significant Accolades (contd.) PNU the largest Fitness center in the world – operated by Fitness Time CONFIDENTIAL 18

Other Significant Accolades (contd.) Shaikh Mohammad Bin Rashid Award – in 2015 CONFIDENTIAL 19

2. Board Members CONFIDENTIAL 20