Investor Presentation COVID-19 update Results for the year ended 31 - PowerPoint PPT Presentation

Investor Presentation COVID-19 update Results for the year ended 31 December 2019 Acquisition of Fitness World on 14 January 2020 29 April 2020 In Investor Presentation 29 April 2020 1

Disclaimer Fo Forw rward rd-lo looking st statements This presentation may include forward-looking statements. All statements other than statements of historical facts included in this presentation, including those regarding the Group's financial position, business and acquisition strategy, plans and objectives of management for future operations are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Group, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Many factors could cause the Group's actual results, performance or achievements to differ materially from those in the forward-looking statements. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. The Group expressly disclaims any obligations or undertaking, except as required by applicable law and applicable regulations to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Group's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Us Use of of non non-IF IFRS fi financial inf infor ormat ation ion Certain parts of this report contain non-IFRS measures and ratios. We believe that these measures are useful indicators of our ability to incur and service our indebtedness and can assist certain investors, security analysts and other interested parties in evaluating us. Because all companies do not calculate these measures on a consistent basis, our presentation of these measures may not be comparable to measures under the same or similar names used by other companies. Accordingly, undue reliance should not be placed on these measures in this presentation. In particular, Adjusted EBITDA and Run-Rate Adjusted EBITDA are not measures of our financial performance or liquidity under IFRS and should not be considered as an alternative to (a) net income/(loss) for the period as a measure of our operating performance, (b) cash flows from operating, investing and financing activities as a measure of our ability to meet our cash needs or (c) any other measures of performance under IFRS. Investor Presentation 29 April 2020 2 In

Contents 1 Introduction & Overview 2 COVID-19 Update: Further update following COVID-19 communication on 24 March 2020 3 PureGym 2019 Results Highlights: For the year ended 31 December 2019 4 Fitness World Acquisition: Rationale & business overview (completed 14 January 2020) 5 Group Financial Position: Combined Group liquidity & pro-forma leverage position 6 Outlook: Looking to the future 7 Appendix: Further information on PureGym, Fitness World acquisition and the Combined Group Investor Presentation 29 April 2020 3 In

Introduction & overview COVID-19 Update • We are making really good progress on mitigating the burn rate, reaching our target of c.£4.5m per week 2019 Full Year Results • An excellent year and start to 2020: we headed into the pandemic from a position of real strength Fitness World Acquisition (14 January 2020) • The strategic logic for this acquisition remains intact for the long-term Group Finance Position • £150m of available liquidity today with strong shareholder support Immediate outlook • Management are very focused on being ready for the reopening phase and “reflating” the business In Investor Presentation 29 April 2020 4

COVID-19 Update Further update following COVID-19 communication on 24 March 2020 In Investor Presentation 29 April 2020 5

PureGym: 2019 Results Highlights COVID-19 Update Fitness World Acquisition: Rationale & Business Overview Group Financial Position: Liquidity & Leverage Outlook: Looking to the Future Appendix COVID-19 status MARKET GOVERNMENT INSTRUCTION AND ACTION TAKEN KEY GOVERNMENT SUPPORT MEASURES • All gyms closed by 21 March following Government instruction • Job retention scheme (wage support) UK − Closure and lockdown protocols in place • Business rates holiday for 12 months 269 gyms − 1.1m member subscriptions in “free freeze” mode 67% Group EBITDA • VAT and Tax payment deferrals • Earliest anticipated opening: early to mid June • Landlord actions restricted to promote “constructive debate” regarding rent • Following Government instructions, all gyms closed on 12 March • 75-95% compensation support for laid off workers up to DENMARK certain thresholds − 480k members in “free freeze” mode 186 gyms • Fixed cost compensation support • Government lockdown recently extended to 11 May 28% Group EBITDA • Loan guarantee support, awaiting further details • Earliest anticipated opening: early June • Gyms closed on 16 March following Government instruction • 60-80% compensation support for laid off workers SWITZERLAND − Over 85% of Basefit’s 75k membership is on 12 or 24 month • VAT and Tax payment deferrals 39 gyms “pay in advance” membership, largely mitigating the impact 5% Group EBITDA • Legal support for tenants not paying rent • Earliest anticipated opening: mid May • Government loan scheme up to £0.5m available • Gyms in Poland closed on 16 March • 60% salary support, details currently being prepared PO POLA LAND − 27k members in “free freeze” mode • Legal support for tenants not paying rent 17 gyms • Earliest anticipated opening: mid May to early June 0% Group EBITDA No Note: Membership data and gym numbers as at 23 March 2020. Group EBITDA reflects the proforma combined Group Run-Rate Adjusted EBITDA of Pure Gym and Fitness World for the year ended 31 December 2019, including an adjustment made to those gyms which are less than three years old at the end of the reporting period to replace the Adjusted EBITDA earned by these sites in the last twelve-month period with the projected Adjusted EBITDA for their third year of operation, but excluding any potential synergies for the combined group. Investor Presentation 29 April 2020 6 In

PureGym: 2019 Results Highlights COVID-19 Update Fitness World Acquisition: Rationale & Business Overview Group Financial Position: Liquidity & Leverage Outlook: Looking to the Future Appendix Weekly cash burn rate Ba Base Case COV OVID-19 19 12-we week full Gr Group closure scenario: • Unmitigated weekly cash burn rate of £9m • Successfully reduced to c.£4.5m per week for 12 weeks (excluding revenue initiatives), comprising: ‒ £1m interest ‒ c.£3.5m operational costs (with scope for further reduction in a prolonged lock down scenario) ‒ Operational costs “P&L burn rate” reduced by c.65% • Equates to a further 33 33 weeks of available cash given £150m liquidity Ke Key assumptions: • All new site capex paused • Committed capex post 31 March only £15m (largely payment of prior period invoices) • Government support sustained for full period of closure • ”Constructive resolution” being pursued with majority of landlords Investor Presentation 29 April 2020 7 In

Pu PureGym Ambassa ssador: Dina Ash (Sunday Times Sportswoman of the Year for 2019) sher-Sm Smith PureGym 2019 Results Highlights For the year ended 31 December 2019 In Investor Presentation 29 April 2020 8

PureGym: 2019 Results Highlights COVID-19 Update Fitness World Acquisition: Rationale & Business Overview Group Financial Position: Liquidity & Leverage Outlook: Looking to the Future Appendix PureGym 2019 Results Highlights Exceeded £100m Continued strong Strong Continued organic site Strong cashflow Run Rate growth in members Adjusted rollout and investment conversion supporting Adjusted EBITDA and revenue EBITDA Margin in estate deleveraging 1,135 1, 135 k £8 £89.1 m 34. 34.9 % 41 41 87.4 % 87. Adjusted EBITDA Adjusted EBITDA Margin New PureGyms opened Operating cashflow closing members +12.1% vs 2018 up +9.6% vs 2018 vs. 35.6% in 2018 in 2019 conversion vs 30 gyms in 2018 vs 101.8% in 2018 +11.6 % £22.9 m £2 19 19 3.6 x 3. 35.0 % 35. Q4 Adjusted EBITDA New organic gyms in 2019 pro forma FY revenue growth Q4 Adjusted EBITDA Q4 vs 2018 up +19.2% vs Q4 2018 Q4 2019 total net leverage Margin down from 3.8x at Dec 2018 vs. 33.2% Q4 2018 21 21 £18.90 £1 £104.5 m £1 3. 3.7 x Gym refurbishments in Run Rate Adjusted 2019 pro forma interest ARPM per month 2019 +2.4% vs 2018 EBITDA cover up +10.1% vs 2018 up from 3.9x at Dec 2018 FY2018 financials reflect the result of Pinnacle Bidco plc, restated on a like-for-like basis for the 12 months to 31 December 2018. Investor Presentation 29 April 2020 9 In