Slide 1: Full Year 2016 Results
STRICTLY CONFIDENTIAL, NOT FOR DISTRIBUTION Full Year 2016 Results 23 March 2017
Slide 2: Highlights
HIGHLIGHTS REVENUE In € millions 258.6 +28% STRONG GROWTH OF REVENUE AND ADJUSTED EBITDA 202.2 Network grew by 81 clubs to 419 27% growth in memberships to 1.21 million 28% revenue growth to €259 million 2015 2016 ADJUSTED EBITDA 80.4 34% growth adjusted EBITDA to €80 million In € millions +34% 60.1
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Slide 4: Achievements Overview
ACHIEVEMENTS OVERVIEW BASIC-FIT IS THE LARGEST CHAIN OF “VALUE-FOR-MONEY” FITNESS CLUBS IN EUROPE BASIC-FIT’S CLUB NETWORK CLUBS REVENUE Luxembourg Spain Luxembourg Spain 3% 7% 2% France 7% 148 10% France Belgium 18% Belgium 38% 41% 159 8 Netherlands Netherlands 39% 35% 419 clubs €259 million 73 MEM
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Slide 6: Track Record of Growth
TRACK RECORD OF GROWTH CONTINUED GROWTH IN CLUBS, MEMBERSHIP, REVENUE AND ADJUSTED EBITDA PROVEN AND SCALABLE MODEL # of clubs at year-end # of memberships at year-end (‘000s) 600 1,500 1,211 419 956 400 338 1,000 792 264 199 553 200 500 0 0 2013 2014 2015 2016 2013 2014 2015 2016 ATTRACTIVE FINANCI
Slide 7: Detailed P&L and Geographic Revenue Split
DETAILED P&L AND GEOGRAPHIC REVENUE SPLIT STRONG OPERATING LEVERAGE • Adjusted club EBITDA margin increased to 43.7% from 41.5% in 2015; adjusted mature club EBITDA margin is 49.6% • Growth of overhead expenses due to further professionalisation of HQ ahead of the IPO and to facilitate further growt
Slide 8: Yield Management & Other Revenue
YIELD MANAGEMENT & OTHER REVENUE SPORTS WATER ROLLED OUT ACROSS THE COUNTRIES; DAY PASSES & PERSONAL TRAINERS IN HIGH DEMAND ADD-ONS OTHER REVENUE SPORTS WATER DAY PASS PERSONAL TRAINING & PHYSIO • Available in all Basic-Fit clubs at year end 2016 • Made available via kiosk in March 2016 • ~150k sub
Slide 9: Adjusted Net Earnings
ADJUSTED NET EARNINGS Reconciliation net result to adjusted net earnings In € millions 2016 2015 Net result (32.4) (23.0) Amortisation 16.7 14.9 Exceptional items Pre-opening costs 2.2 1.6 Transaction costs 49 - Other exceptional costs 3.9 2.8 One-off costs Breakage costs related to early repayment
Slide 10: Cash Flow & Capital Expenditure
CASH FLOW & CAPITAL EXPENDITURE SIGNIFICANT INVESTMENT TO MAINTAIN HIGH QUALITY STANDARDS AND ROLLOUT NEW CLUBS Maintenance capex €38 thousand per club in 2016 Expected capex per club of around €55 thousand as of 2017 Expansion capex Includes €15 million investments in small acquisitions and expansi
Slide 11: Embedded Growth Potential from Maturation
EMBEDDED GROWTH POTENTIAL FROM MATURATION AVERAGE MEMBERSHIP RAMP-UP PER NEW CLUB CLUB MATURATION TO DRIVE EBITDA GROWTH 2016 average adjusted club EBITDA # of clubs 2016 # of members (in 1,000) 4.0 379 181 France +25% 419 Group €372K 3.0 €298K Basic-Fit av. mature membership of c.3,300 members 2.0
Slide 12: Strong Capital Structure
STRONG CAPITAL STRUCTURE FUNDING ACCELERATED GROWTH PLAN SECURED Proceeds of IPO used to deleverage New facilities agreement with substantially lower interest expenses going forward (2.5-3%) Net debt of €206 million; 2.6 x adjusted EBITDA Extension of revolving credit facility to facilitate growth R
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Slide 14: Significant White Spot Potential in Each Market
SIGNIFICANT WHITE SPOT POTENTIAL IN EACH MARKET France Spain The Netherlands Belgium Growth Levers ~915 clubs(a) ~970 clubs(b) White Spot ~485 clubs(a) Availability ~245 clubs(b) ~125 clubs(c) ~130 clubs(d) ~50 clubs(d) White spots (OC&C Case) Further upside ü Meaningful ü Some ü Some ü Meaningful M
Slide 15: The French Opportunity
THE FRENCH OPPORTUNITY BASIC-FIT IS THE #1 LOW-COST NON-FRANCHISE PLAYER IN ACCELERATION OF ROLLOUT IN FRANCE FRANCE # of clubs at the end of the period By # of gyms; top 5 low-cost operators only 80 70 60 2% 11% 50 14% 40 73 30 57% 57 22% 44 20 32 25 10 18 11 12 8 5 0 Sep-14 Dec-14 Mar-15 Jun-15 Se
Slide 16: Well Structured Approach to Site Selection
WELL STRUCTURED APPROACH TO SITE SELECTION… Strong member demand Convenience, access and exposure • Detailed demographic analysis • Convenience and exposure focusing on population density and critical to attract and retain socioeconomic factors such as members income levels • Sufficient car parking
Slide 17: Driven by Technology and Local Intelligence
…DRIVEN BY TECHNOLOGY AND LOCAL INTELLIGENCE WELL ESTABLISHED AND STANDARDISED PROCEDURE FOR SITE SELECTION ~ 1 month ~3-6 months ~3-6 months Research Analysis Approval / Negotiation New Club Opening • Nationwide sourcing of • New club analysis (i.e. • Country manager, CFO and • Fit-out complete sit
Slide 18: Strong Rollout Pipeline and Visibility
STRONG ROLLOUT PIPELINE AND VISIBILITY FOCUS OF ROLLING OUT CLUBS IN FRANCE ON TRACK TO DELIVER MEDIUM TERM ROLLOUT PLAN Rollout plan (new openings (net) - # of clubs) Pipeline visibility (# of clubs) 120 160 140 c.100 c.100 140 100 120 81 80 74 100 60 80 69 60 40 40 29 20 20 0 0 2015 2016 2017 2018
Slide 19: Medium Term Outlook
MEDIUM TERM OUTLOOK ACCELERATION OF CLUB ROLLOUT STRATEGY Well filled new club openings pipeline Grow Basic-Fit network by around 100 clubs in 2017 and onwards Grow revenue on average by at least 20% a year, with significant operating leverage Modest like-for-like revenue growth of mature clubs Focu
Slide 20: Growth Components Unchanged
GROWTH COMPONENTS UNCHANGED YIELD MANAGEMENT & SECONDARY INCOME • Basic-Fit is committed to keeping membership fees low • Focus on “add-on” fee opportunities MATURATION OF EXISTING to increase membership yield by ESTATE offering value-added products and • Visible and consistent maturity services pro
Slide 21: Any Questions?
ANY QUESTIONS? 21
Slide 22: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Basic Fit N.V. and its subsidiaries (referred to as 'the company') and certain of the plans and objectives of the company with respect to these item
Slide 23: Basic-Fit NV contact details
Basic-Fit NV Wegalaan 60 2132 JC Hoofddorp The Netherlands investor.relations@basic-fit.com +31 23 890 1750 corporate.basic-fit.com 23