Basic-fit Nv · EURONEXT:BFIT
Basic-fit Nv — Investor Presentation (June 2021)
42 slides from Basic-fit Nv's investor presentation, June 2021
Slide 1: Investor Presentation June 2021
PRES EN TAT I O N INVES T O R JUNE 2 0 2 1
Slide 2: COVID-19 Update
NETHERLANDS 211 COVID-19 UPDATE* BELGIUM 192 LUXEMBOURG 10 Spain stayed open during the 2nd wave Luxembourg reopened 11 Jan FRANCE 447 Netherlands reopened 19 May • Capacity and certain other restrictions apply Belgium and France reopening 9 June Restart growth strategy by opening 68 new clubs in SP
Slide 3: History & Track Record
HISTORY & TRACK RECORD PLAATS HIER EEN
Slide 4: History of Basic-Fit
HISTORY OF BASIC-FIT A long track record of growth in the fitness space 1984 2010 2013 2016 2019 2020 Our team started Acquisition of Separation IPO Basic-Fit is Basic-Fit manages Basic-Fit / listing on Europe’s largest impact COVID-19 HealthCity and and fastest and opens 121 Mid-market brand* 28 lo
Slide 5: Recommencing Our Track Record After COVID-19
RECOMMENCING OUR TRACK RECORD AFTER COVID-19 Revenue and underlying EBITDA* more than tripled between 2014-2019 # of clubs # of memberships (‘000s) 1,000 23% 2,400 2,221 2020: 905 R 2014 – 9: 23% 2,001 CAG 784 – 201 1,843 800 2014 629 1,800 CAGR 1,524 600 521 1,211 419 1,200 956 400 338 792 264 600
Slide 6: The Opportunity
| THE OPPORTUNITY
Slide 7: Immature European Fitness Markets
IMMATURE EUROPEAN FITNESS MARKETS … …offer significant growth opportunities Membership penetration, % 25% Fitness penetration in the US 20% 15% 10% 5% 0% SE NO DK NL FI UK DE AT ES IE IT FR PL BE PT Basic-Fit’s markets of presence Source: Deloitte and EuropeActive – European Health & Fitness Market
Slide 8: Fitness Perfectly Fits Needs of Millennials and Gen Z
FITNESS PERFECTLY FITS NEEDS OF MILLENNIALS AND GEN Z Increased awareness of health & wellness RISE IN LIFE EXPECTANCY – EUROPEAN UNION(a) Years 90 84 87 80 81 75 71 70 50 1970 1990 2010 2020 2040 2060 INCREASE IN DIABETES – GLOBALLY(b) Million People 800 700 463 578 600 366 415 400 151 200 0 2000 2
Slide 9: Our Growth Strategy
OUR GROWTH STRATEGY
Slide 10: Our Growth Pillars
OUR GROWTH PILLARS Yield management & other revenue • Basic-Fit is committed to keeping membership fees low Maturation of existing estate • Increase membership yield by offering value-added products and services • Visible and consistent maturity profile for new openings • Other revenue sources from
Slide 11: Large White Space Potential
LARGE WHITE SPACE POTENTIAL 2,000 clubs potential by increasing the fitness penetration and market share gains 31/12/2020 GOAL HOW 211 clubs 300 clubs CLUSTERS in NL in NL 203 clubs 300 clubs REGIONAL CLUBS in BELUX in BELUX 447 clubs 950 clubs BIG CITIES / PARIS / IDF / in FR in FR REGIONAL CLUBS 4
Slide 12: Our Concepts
OUR CONCEPTS New and improved Basic-Fit club concept tweaked to perfection Basic-Fit Express clubs for smaller villages and large city centres Basic-Fit Ladies clubs for selective places in large cities Concept range enables the opening of clubs that are better attuned to local demand…. …and enables
Slide 13: Cluster Strategy
CLUSTER STRATEGY Cluster strategy enhances market position and increases penetration A club can be built in a catchment area with at least 30K inhabitants The number of clubs that we open in an area depends on the total membership potential Simultaneous fit-out of cluster clubs Operational advantage
Slide 14: Embedded Growth Potential from Maturation
EMBEDDED GROWTH POTENTIAL FROM MATURATION Club maturation significantly contributes to EBITDA growth Average underlying club EBITDA 2019* 707 405 Underlying club EBITDA increases with maturation of network +35% €427K Average underlying mature club EBITDA of €317K €427 thousand per club in 2019 Under
Slide 15: Increasing Average Mature Club EBITDA
INCREASING AVERAGE MATURE CLUB EBITDA All mature clubs are profitable In € thousands Mature club underlying EBITDA Margin 450 427 55% 391 395 372 350 343 50.5% 50% 48.0% 250 45% 150 40% 2015 2016 2017 2018 2019 # mature - 181 246 327 405 clubs 15
Slide 16: Yield Management & Other Revenue
YIELD MANAGEMENT & OTHER REVENUE 2.5% of total revenue, highly profitable ADD-ONS / YIELD OTHER REVENUE SPORTS WATER DAY PASS* PT & PHYSIO Basic-Fit Media • Available in all Basic-Fit clubs • For one-off visits • >20% membership penetration • > 35,000 day passes a month Day Pass Sports Water Sugar f
Slide 17: 24/7 Connection with Our Members
24/7 CONNECTION WITH OUR MEMBERS Reaching 5 million people by 2025 Club Home Audio workouts club (2019) Always Audio workouts home (2019) Club Training app part of life Home training app Kiosk Customer journey e-mail My Basic-Fit QR code reader Virtual assistant Virtual coach training Foodtracking a
Slide 18: Why Our Model Works
WHY OUR MODEL WORKS PLAATS HIER EEN
Slide 19: Basic-Fit Has a Proven and Scalable Business Model
BASIC-FIT HAS A PROVEN AND SCALABLE BUSINESS MODEL Experience and proven track record Best-in-class Operating cost Capex efficiency execution efficiency Compelling Engaging Ability to consumer member reinvest proposition journey Efficient & professional organisation Significant scale benefits and ba
Slide 20: Compelling Consumer Proposition
COMPELLING CONSUMER PROPOSITION We make affordable fitness available for all HIGH QUALITY ESTATE STATE OF THE ART EQUIPMENT EXCITING EXERCISE PROGRAMMES 20
Slide 21: Affordable Membership Options
AFFORDABLE MEMBERSHIP OPTIONS A non-complicated process to join The Basic membership option is a pilot (since April 2019) and currently only available in Spain. 21
Slide 22: Interactive Tech-Enabled Member Experience
INTERACTIVE TECH-ENABLED MEMBER EXPERIENCE Technology enhances the customer experience whilst keeping costs low SIGN-UP ENTER CLUB 24/7 CUSTOMER SERVICE Kiosk Online Registration Stadium Gate Digital Customer Support integrates AI and Live Chat • Seamless self-service sign up and • Secure & controll
Slide 23: Engaging Member Journey
ENGAGING MEMBER JOURNEY Basic-Fit has a longer length of stay than the average fitness club 22 tot 23 months Basic-Fit has a longer average length of stay than the fitness industry in general and our 18 tot 19 figure is growing months Our average length of stay (LoS) at the time of our IPO was 18-19
Slide 24: Well Structured Approach to Site Selection
WELL STRUCTURED APPROACH TO SITE SELECTION Driven by technology and local market insights and experience Research Analysis Approval / New Club Opening • Nationwide sourcing of sites • New club analysis Negotiation • Fit-out complete (via real estate agencies) (i.e. costs and membership • Business ma
Slide 25: Data Analysis
DATA ANALYSIS Detailed analysis remains fundamental to our competitiveness Drive Time Analysis Inhabitants Age distribution Other demographics Fitness Penetration Competitors Competitor Analysis Market share Members 25
Slide 26: Consistent Unit Returns
CONSISTENT UNIT RETURNS* ROIC target of 30% In € thousands Club underlying EBITDA development 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months from opening -20 All clubs * As achieved pre-COVID-19 26
Slide 27: Efficient Operations Drive Attractive Economics
EFFICIENT OPERATIONS DRIVE ATTRACTIVE ECONOMICS* Further operating leverage as we continue to grow the business Cost efficient operations Technology is an enabler of our business model and at the core of our Example of an operations CLUB ECONOMICS average mature club Clubs run with less than 3 FTEs
Slide 28: Appendix
APPENDIX PLAATS HIER EEN
Slide 29: Highlights 2020
HIGHLIGHTS 2020 Grew network by 121 clubs to 905 Strong start of the year disrupted by COVID-19 lockdowns in March Strong membership growth after reopening in the summer 30 million visits in clubs since reopening without any reported outbreak of COVID-19 Second period of COVID-19 lockdowns in FR/BE/
Slide 30: Our Clubs Were Closed 41% of the Time in 2020
OUR CLUBS WERE CLOSED 41% OF THE TIME IN 2020 Closed between 4 and 7 months and open with restrictions Restrictions, timing and duration of measures differ per country Spain hit hard by COVID-19, but stayed open during 2nd wave Netherlands, from last one to reopen to last one to close France had the
Slide 31: Swift Action to Keep the Business Healthy
SWIFT ACTION TO KEEP THE BUSINESS HEALTHY Focus on retention and engagement of our members and employees • Clear communication • 2 periods of membership freeze and compensation • Promotion of Basic-Fit App to work out at home Focus on cash flow and liquidity • Strict costs control • Lower capex spen
Slide 32: Strong Membership Growth During Open Periods
STRONG MEMBERSHIP GROWTH DURING OPEN PERIODS Successful campaigns in Jan/Feb and summer Joiners Basic-Fit clubs 2020 vs. 2019 Strong start of the year and catch up effect after first 1 2 3 4 waive (1 & 3) Lockdown periods with leavers, but no joiners and fewer joiners at the start of the second waiv
Slide 33: Growth Strategy Remains Unchanged
GROWTH STRATEGY REMAINS UNCHANGED COVID-19 relating government measures result in: • Weakened fitness industry; chains with limited access to capital are being hit hardest • More focus on health & well-being and expected increased fitness penetration levels • Ample availability of good sites at impr
Slide 34: Outlook
OUTLOOK When we have reopened our clubs and have more visibility on the development of COVID-19 and memberships, we will update the market on our expectations regarding club openings for 2021 and 2022 We expect to benefit from increased focus on health & wellbeing after COVID-19, which will lead to
Slide 35: Revenue
REVENUE Significant impact from temporary club closures We lost well over €200 million in revenue due to COVID-19 Membership freeze and compensation Negative impact on our membership base 75% of the members who indicated their preferred way of compensation, opted for a discount over a six-month peri
Slide 36: Income Statement
INCOME STATEMENT Loss of revenue weighs on performance Key figures (In € millions) 2020 2019 CHANGE Revenue impacted by clubs being closed for 41% of the time Total revenue 376.8 515.2 -27% Club revenue 374.9 513.5 -27% Non-club revenue 2.0 1.7 17% Club operating costs (187.8) (182.6) 3% Club cost s
Slide 37: Income Statement: Underlying EBITDA and Net Result
INCOME STATEMENT Underlying (club) EBITDA and net result Underlying key figures (In € millions) 2020 2019 CHANGE Club EBITDA 187.0 330.9 -43% Exceptional items are almost entirely Rent costs (open clubs) (124.3) (108.1) 15% Exceptional items - clubs 91.0 0.1 Underlying Club EBITDA (open clubs) 153.8
Slide 38: Capital Expenditure
CAPITAL EXPENDITURE Expansion capex In € millions 2020 2019 Includes €35.4 million investments in yet to open clubs, Expansion capex (162.9) (229.0) acquisitions and expansion of existing clubs (2019: €80 million, including Fitland) Maintenance capex (35.7) (39.1) €1.2 million spent on average per n
Slide 39: Balance Sheet
BALANCE SHEET Net debt* of €539 million (FY 2019: €451 million) • Leverage ratio of 4.9 versus 2.5 in 2019 (bank covenants definition) • Waiver (Dec-20 & Jun-21) and relaxation (Dec-21) on loan covenants received Cash and cash equivalents of €70 million (FY 2019: €66 million) • Including undrawn fac
Slide 40: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures used for the years 2019 and 2020 Term Definition Club EBITDA EBITDA before overhead costs and net result from non-club revenue (webshop and NXT Level) Club EBITDA margin Club EBITDA as a percentage of club revenue Underlying club EBIT
Slide 41: 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 42: Thank You for Your Attention
THAN K Y O U UR A T T EN T I O N FOR YO