Leejam Sports Company Investor Presentation FY 2018 Results Table - PowerPoint PPT Presentation

Leejam Sports Company Investor Presentation FY 2018 Results

Table of Contents Page 1. Company Profile 3 2. Financial Performance 16 3. Outlook FY 2019 28 CONFIDENTIAL 2

1. Company Profile CONFIDENTIAL 3

Largest Fitness center operator in the MENA Region An indigenous and localized Proud Saudi Brand 126 incl. 26 female 217k Operational Fitness Centers Active Members & growing (31 December 2018) (31 December 2018) 15 th 16% Female members of total member base Largest Fitness Chain in the World (2018 IHRSA 1 Global Ranking) (26 female centers as of December 2018) 1 Source: International Health, Racquet & Sportsclub Association (IHRSA); in terms of number of wholly-owned centers CONFIDENTIAL 4

Other Key Metrics 800M SAR 733M SAR 180M SAR 174M SAR Net Income Revenues Revenues Net Income (FY 2017) (FY 2018) (FY 2017) (FY 2018) 313M SAR 54M SAR 291M SAR 49M SAR Net Income EBITDA EBITDA Net Income (Q4 2018) (FY 2018) (FY 2017) (Q4 2017) 255+ Participated in 13 40k Corporates as Fitness Events in KSA & Corporate Members Customers Approx. 2,850 Staff Training hours in 2018 CONFIDENTIAL 5

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, Jan 2019 Healthcare spending to drive fitness sector growth The government’s expenditure on healthcare has increased over the past few years at a CAGR of 9.2%. 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, Jan 2019 CONFIDENTIAL 6

Diverse Brand Portfolio to Serve the Market Male Brands Female Brands Other Brands CONFIDENTIAL 7

Key Milestones - First “Fitness - Start Planning - Introduction of - The Company - Investcorp - Launch of - Intro of PT Time” Phase Fitness Time opens its 50th acquires 25.1% female fitness - UAE launch - First “Fitness standalone Pro category fitness center stake in Leejam - Exclusive centers Time” center concept opens partnership with opens in Tabuk in Jeddah FC Barcelona - MBR Award for Sports Creativity 2007 2009 2011 2013 2017 2015 2005 2008 2012 2014 2006 2010 2016 2018 - Listing of 30% - Leejam Sports - Introduction of - The Company shares on Company is Fitness Time opens its 100 th Tadawul (IPO) Plus and established and fitness centre in September acquires the Fitness Time - Ranked in 2018 Global “Top 25” Fitness Time Junior brands - Ranked 15 th in brand by IHRSA global top 25 by IHRSA CONFIDENTIAL 8

Leejam 3.0 Goal: To be Top 10 Fitness Company in the World and be Employer of Choice in KSA Open Door Invest In Policy Our People 6 Key Pillars to Improved Enhance achieve Leejam 3.0 Corporate Customer Governance Experience in the next 3 years Grow and Exceed Leverage Shareholders Technology Expectations CONFIDENTIAL 9

Market Leader with Strong Scale Advantage Strong geographical footprint with presence in 27 cities Geographic Footprint Fitness Centres Evolution (as of 31 December 2018) (122) ● Hafr Sakakah (4) Al Batin (1) ● (1) ● Tabuk Ha’il ● (1) ● Jubail (1) ● Buraydah Yanbu (4) Saihat ● (1) (2) Madinah ● Unaizah ● (1) Ras Al Khaimah ● ● (8) Unaizah (2) (1) ● Dammam ● (1) Dawadmi Ajman ● (6) Dubai (1) (1) Al Hasa ● (1) ● ● (2) Makkah ● Riyadh Al-Khobar ● ** (6) (6) (48) ● ● ● # of Fitness Al Kharj Jeddah ● Ta’if (1) (23) Centres ● Al Baha (2) (1) ● K. Mushait (2) ● Jizan (1) ● Najran (1) Source: Company * Based on International Health, Racquet & Sports club Association (IHRSA) in terms of number of wholly-owned centers ** 3 centers are currently closed for conversion to female centers CONFIDENTIAL 10

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 4 46 39 4 - 20 5 # of Fitness Centres 1 – UAE - 1 2 0 - - 1 12-month Price (SAR) 2 8,925* 4,988* 3,255* 3728* 8,925* 3 4,988* 3 3,255* 3 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 Academy & 1 Kidzenia locations (for kids). Total 126 locations. 3 Female prices are based on “Home Rate” membership 1 As of 31 Dec 2018 2 Standard prices as of 31 Dec 2018 * VAT Inclusive CONFIDENTIAL 11

Segmented Concept, Recognised Brand (2/3) State-of – art Spacious Facilities with a Customized Service Offering   Competitions and tournaments Available in each center to organised on a regular basis assist with equipment use, Special Floor for members fitness regime etc. Events Trainers   Over 13k participants in 2018 >1000 Floor Trainers in the across 10+ sports current network  New home-grown concepts  1-on-1 coaching from a introduced in 2017 qualified instructor, launched in New Exercise Personal 2015 - eXtreme Fitness Concepts Training  Available in 81 centers, with - eXtreme Boxing over 228 Personal Trainers - eXtreme Bootcamp  Diverse GX programming available across the network; Industry- >20 different class types Group Leading Classes  28 GX classes / week for Male Equipment centres & 35 GX classes / week for Female centres 1 as of 31 of December 2018 CONFIDENTIAL 12

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 27cities 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 Service Key Statistics Number of corporates Number of corporate Corporate Sales (FY 2018, SAR) as B2B and B2C clients members (December 2018) (December 2018) SAR 103.1M SAR 93.0M 255+ 40,000 Approx. (FY 2017, SAR) CONFIDENTIAL 13

Other Significant Accolades Shaikh Mohammad Bin Rashid Award – in 2015 CONFIDENTIAL 14

Other Significant Accolades (contd.) PNU the largest Fitness center in the world – operated by Fitness Time (in process of getting Guinness World Records Accreditation) CONFIDENTIAL 15

2. Financial Performance CONFIDENTIAL 16

FY Revenue and Net Income Revenue Key Messages: (SAR million)  Revenue was 9% higher vs. LY, mainly due to; 112 126 102 # of Fitness Centres  new centers openings in CY (in particular 18 12 13 4 - new Male Centres female center openings including converted - new & Converted Female 8 18 - centers), Centres  ramping-up of non-LFL centers opened LY, and  growth in personnel training revenue (more number of PT centers). Net Income (SAR million) Key Messages:  FY 2018 net income growth primarily driven by; Net Margin 29% 24% 23% 26%  revenue growth from non-LFL & new female centers, and cost control  FY 2018 was impacted by one-off items amounting SR 31M (VAT leakage, one-off payment, fixed assets written off upon conversion etc.) [explained in slide 25] CONFIDENTIAL 17

Revenue Break-Down Revenue by Type Revenue by Brand (%, FY 2018) (%, FY 2018) No. of centers by category 2018 2017 2016 FT Men 49 50 48 PRO Men 41 42 40 Plus Men 4 4 3 Junior 4 8 9 Basic 0 0 1 Academy & Kidizinia 2 0 1 FT Female 23 4 0 PRO Female 3 4 0 Source: Company Total 126 112 102 CONFIDENTIAL 18