Gym Group Plc · LSE:GYM
Gym — The Gym Group — ESG Presentation (June 2024)
40 slides from Gym's sustainability presentation, Jun 27, 2024
Slide 1: ESG at the gym group
ESG at the gym group Webinar 27th June 2024
Slide 2: the gym group ESG webinar, June 2024
2 the gym group ESG webinar, June 2024
Slide 3: Today’s agenda
Today’s agenda Introduction Will Orr, Chief Executive Officer Good health & wellbeing Cornelia Woschek, Business Development & Sustainability Director Good jobs & career opportunities; EDI Ruth Jackson, Chief People Officer Responsibility to the environment & governance David Melhuish, Chief Develop
Slide 4: the gym group at a glance
the gym group at a glance member visits up from £13.99 per month +10% YoY Avg. visits per member per month 2022-23 high quality kit value free classes 92% rate us 237 gyms 4/5 or higher Avg. 2023 member satisfaction no contract local Google & Trustpilot >900k members convenience 24/7 4.5/5 Avg. comb
Slide 5: Investment case: sustained growth from free cash flow
Investment case: sustained growth from free cash flow price optimisation and robust and growing yield enhancement market …to reinvest in proposition low-cost new customer volume and new site model taking around existing sites expansion share data-driven and retention of members improving tech-enable
Slide 6: The next chapter growth plan
The next chapter growth plan accelerate strengthen rollout broaden the core of quality our growth sites breaking down barriers to fitness for all 6 the gym group ESG webinar, June 2024
Slide 7: ESG at the gym group
ESG at the gym group 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 7 AFFORDABLE AND CLEAN ENERGY 8 DECENT WORK AND ECONOMIC GROWTH 10 REDUCED INEQUALITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION Colours reflect alignment to the UN Sustainable Development Goal
Slide 8: ESG targets at the gym group
ESG targets at the gym group At least 52% of members using our 50/50 gender balance & 20% gym at least 4x per month in 2024 ethnic diverse leaders by 2030 Net Zero by 2045 and reduction in Supporting 500 people to gain Level 3 carbon emissions of 50% by 2030 personal trainer qualification by 2030 10
Slide 9: A proud track record in ESG
A proud track record in ESG ‘AAA’ rated healthy people healthy communities healthy planet Avg visits per member Sunday Times best First carbon neutral +22% since 2019 places to work 2024 UK gym chain First national gym chain to SBTi validated 64m visits per year achieve ISO45001 net zero targets cer
Slide 10: Good health & wellbeing
Good health & wellbeing Cornelia Woschek
Slide 11: Impact of regular exercise on our members
Impact of regular exercise on our members “ My daughter was unhappy last year after two significant operations, both with subsequent problems. Her confidence was low – especially her body confidence. After two PT courses, she has now lost significant weight, retained muscle, “ I had high blood press
Slide 12: Measuring social value at the gym group
Measuring social value at the gym group Building on extensive research, 4global partnered with sector-leading organisations to build the Social Value Calculator to evidence the impact of physical activity and sports participation. Leading UK academic institution created the 4global manages the DataH
Slide 13: More members exercising more frequently for longer increases social value
More members exercising more frequently for longer increases social value Volume of participants Frequency and activity Demographic and socio-economic profile mental individual social and community health wellbeing development development £97 million £528 million £23 million £242 million £890 millio
Slide 14: Delivering on our purpose drives commercial success and social value
Delivering on our purpose drives commercial success and social value Value for money Higher average Improved 24/7 membership accessibility No contract per gym more members * Business model that is Providing access Attracting members working out Breaking down commercially viable in to underserved at
Slide 15: New long term partnership with NHS Charities Together
New long term partnership with NHS Charities Together Damage to health through Raise awareness Providing meaningful inactivity places more of benefits of volunteering opportunities pressure on the NHS regular exercise in local health projects
Slide 16: Leading the way in keeping members & employees safe
Leading the way in keeping members & employees safe UK’s First 24/7 Gym UK’s First National 2024 Chain to achieve Gym Chain to achieve RoSPA certification to EN 17229 certification to ISO 45001 Gold Award Winner under FITcert® Stage 4 16 the gym group ESG webinar, June 2024
Slide 17: Good jobs & career opportunities; equality, diversity & inclusion
Good jobs & career opportunities equality, diversity & inclusion Ruth Jackson
Slide 18: Highly engaged, high performing teams critical to delivering positive member experience
highly engaged, high meaningful career performing teams critical journeys & commitment to delivering positive to ED&I breaking down member experience barriers 18 the gym group ESG webinar, June 2024
Slide 19: Engaged teams
Engaged teams 19 the gym group ESG webinar, June 2024
Slide 20: Good jobs and career opportunities
Good jobs and career opportunities target today 2024 2025 500 people to 48 people accelerate PT TGG PT academy gain a Level 3 since Q4 Personal Trainer 2023 inclusive qualification traineeships by 2030 A minimum of 54% emerging talent defined career 60% internal pathways in progression leadership gy
Slide 21: Equality, diversity & inclusion
Equality, diversity & inclusion target today 2024 2025 50:50 gender 31% female Engagement survey reverse mentoring balance by 2030 69% male monitoring mean gender pay gap in hourly pay • D&I score 9/10 inclusion training network groups 0.6% 40% female 29% female • Age Inclusion median gender pay gap
Slide 22: Responsibility to the environment
Responsibility to the environment David Melhuish
Slide 23: Delivering a credible net zero pathway
Delivering a credible net zero pathway 50% reduction in scope 1 and 2 emissions by 2030 decarbonising operational emissions by 2035 validated to follow a reduction pathway Science based target to achieve net-zero by limiting global warming to 1.5ºC 2045 23 the gym group ESG webinar, June 2024
Slide 24: Progress against our net zero target
Progress against our net zero target Scope 1, 2 and 3 emissions reduction Scope 1, 2 and 3 emissions reduction 50,000 45,000 40,000 Scope 3 emissions tCO2e 35,000 emissions tCO2e Scope 2 emissions tCO2e 30,000 Scope 1 emissions tCO2e Targeted emissions (tCO₂e) 25,000 Scope 1 and 2 ab sol ute re duct
Slide 25: Driving energy efficiency by analysis of gym consumption & cost
Driving energy efficiency by analysis of gym consumption & cost Comparison of performance by site Top 10 consumers Energy consumption by Type comparison of gym energy consumption across the estate poor performing gyms targeted for review and intervention Bottom 10 consumers Energy consumption vs vis
Slide 26: Driving energy efficiency by analysis of gym consumption & cost
Driving energy efficiency by analysis of gym consumption & cost Understanding where our energy is used Plant & Equipment Power Consumption – Grimsby Jan-Feb 2024 Air Conditioning • Individual site level detailed analysis allows identification of where energy is consumed • Informing our design improv
Slide 27: Energy saving initiatives
Energy saving initiatives Capital cost c.£10k Energy reduction average 8% Simple payback 24 months team engagement voltage optimisation solar panels 27 the gym group ESG webinar, June 2024
Slide 28: Water saving initiatives
Water saving initiatives Fitting 'limpet' Our original devices to water shower heads meters to enable discharged 9 litres remote data per minute logging Our current Trends and shower heads benchmarking discharge 6 litres enable issues to be per minute detected early We have over 2,000 showers remote
Slide 29: Governance at the gym group
Governance at the gym group David Melhuish
Slide 30: Who is responsible for ESG at the gym group?
Who is responsible for ESG at the gym group? the gym group plc board sustainability committee sustainability working group equality, diversity & inclusion health, safety & wellbeing environment, social & governance 30 the gym group ESG webinar, June 2024
Slide 31: Targets are linked to executive pay
Targets are linked to executive pay Growth in Social Value Member visits Social Value % 4+ visits Increasing the percentage 900 60% of members visiting our gyms 890 4x or more per month 800 50% 700 756 52.0% 600 700 40% 50.8% 500 30% 400 47.2% 300 20% 200 10% 100 0 0% 2019 2022 2023 2022 2023 2024 t
Slide 32: Sustainability standards and reporting is evolving...
Sustainability standards and reporting is evolving... retired into complements Taskforce on Climate Related International Sustainability Global Reporting Initiative Financial Disclosures Standards Board consolidates Science Based Carbon Disclosure Project Sustainability Accounting Targets Initiative
Slide 33: ...and is now increasing at pace across all jurisdictions
...and is now increasing at pace across all jurisdictions UK SDR: sustainability informs disclosure regulates requirements implements IFRS The UK Sustainability Disclosure Requirements (SDR) Sustainability endorses and will implement IFRS S1 & S2 Disclosure Standard The FCA ‘Anti-greenwashing Rule’,
Slide 34: How ESG can create value by mitigating risks & recognising opportunities
How ESG can create value by mitigating risks & recognising opportunities transition climate related risks Increasingly demanding regulation physical climate related risks Extreme weather events climate related opportunities • Increased energy • Climate resilient efficiency • Preparing for a zero • I
Slide 35: Summary
Summary Will Orr
Slide 36: Summary
Investment case: commitment to deliver 01 sustained growth from free cashflow Next Chapter growth plan enhanced 02 by ESG plan and progress Summary 03 More members exercising more for longer = Social Value and revenue growth Supported by engaged teams & site cost 04 management to drive strong cashfl
Slide 37: Upcoming dates
Upcoming dates Pre-close trading update 10 July 2024 Interim results 11 September 2024 38 the gym group ESG webinar, June 2024
Slide 38: Q&A
Q&A
Slide 39: Appendix
Appendix
Slide 40: How do we protect data and manage risks?
How do we protect data and manage risks? functions external risk within tgg audits management Data Protection GDPR Compliance Fortnightly risk and compliance meetings Information Security PCI level 2 Data Protection is IT Monitoring for threats Cyber Essentials on the risk register and vulnerabiliti