Slide 1: Basic-Fit Investor Presentation March 2024
BASIC-FIT INVESTOR PRESENTATION MARCH 2024
Slide 2: Table of Contents
TABLE OF CONTENTS 01 Recap 2023 02 History & track record 03 The opportunity 04 Our growth strategy 05 Why our model works 06 Sustainability 07 Appendix
Slide 3: Recap 2023
RECAP 2023
Slide 4: Record Club Growth: 202 Net Openings in 2023
RECORD CLUB GROWTH: 202 NET OPENINGS IN 2023 237 (+6) Netherlands 12 (+9) Germany 223 (+4) Belgium 1,402 clubs compared to 1,200 at the end of 2022 (+17%) 10 (-) Luxembourg Market leadership substantially extended in: 781 (+134) France o France: 134 net club growth (+21%) o Spain: 49 net club growth
Slide 5: RSG Spain Transaction
RSG SPAIN TRANSACTION LIFTING SPANISH NETWORK TO CA. 200 CLUBS 47 clubs o.w. 42 McFIT and 5 Holmes Place locations Closing RSG Spain transaction expected in next couple of weeks Strong presence in Barcelona region Rebranding to Basic-Fit brand starts right after closing 2030 potential of 450 to 700
Slide 6: 13% YoY Membership Growth to 3.8 Million
13% YOY MEMBERSHIP GROWTH TO 3.8 MILLION Millions Memberships 2016 - 2023 4.0 Growth was recorded in all countries: 3.0 o Strong performances in Benelux & Spain o France held back a bit by social unrest and consumer environment 2.0 882 mature clubs have on average 3,283 memberships 1.0 New membershi
Slide 7: Club Openings Pipeline
CLUB OPENINGS PIPELINE Further strong growth of our club network in 2024 to 1,575 clubs Cash flow and macro developments included in club roll-out plans for 2024 RSG Spain clubs, following rebranding, will be treated as newly opened clubs CLUB OPENINGS PIPELINE (# CLUBS) > 400 400 200 114 122 57 51
Slide 8: Exploring Franchise Opportunities
EXPLORING FRANCHISE OPPORTUNITIES MAXIMISING FUTURE GROWTH & RETURNS IN A FRANCHISE MODEL, POSSIBLE POTENTIAL WE CAN LEVERAGE OUTCOMES BENEFITS Faster growth Our own technology and Start franchise opportunities automation capabilities on our own Operate in more Our site selection and Buying an estab
Slide 9: Solid Financing Structure
SOLID FINANCING STRUCTURE NO SIGNIFICANT DEBT REPAYMENTS NEXT THREE YEARS Maturity of debt facilities 750 Syndicated facilities: €760** million due June 2027 + options to extend by two years to June 2029 Extension €40*** million uncommitted revolving 500 option facility accordion Convertible bond lo
Slide 10: Outlook 2024
OUTLOOK 2024 FURTHER SUBSTANTIAL GROWTH IN REVENUE AND UNDERLYING EBITDA LESS RENT Further strong growth Revenue between Mature club ROIC of Further gradual of our network and €1.20 - €1.25 billion well over 30% increase membership base in yield to at least €24.50 10
Slide 11: History & Track Record
HISTORY SRI ANGI [RA ECOR (0) BASIC-FIT
Slide 12: History of Basic-Fit
HISTORY OF BASIC-FIT A LONG TRACK RECORD OF GROWTH IN THE FITNESS SPACE 1984 2010 2013 2016 2019 2022 Our team started Acquisition of Separation Basic- IPO listing on Basic-Fit is Europe’s First clubs opened Mid-market brand* Basic-Fit Fit / HealthCity and Amsterdam largest and fastest in sixth coun
Slide 13: We Deliver Strong Growth
WE DELIVER STRONG GROWTH ALL KPI’S HAVE STRONG CAGR BETWEEN 2016-2023 yield (euros) # of clubs # of memberships (millions) 25 22.86 23.53 1,402 3.80 1,500 1,200 4.0 20.56 3.35 19.46 19.41 19.39 1,015 20 905 1,000 784 3.0 COVID 629 2.22 2.22 521 1.84 2.00 13.77 419 15 500 2.0 1.52 1.21 - 1.0 10 2016
Slide 14: The Opportunity
THE OPPORTUNITY
Slide 15: European Fitness Markets Still Far from Mature
EUROPEAN FITNESS MARKETS STILL FAR PROVIDING ACCESS TO HIGH VALUE & LOW-PRICE GYMS WILL DRIVE 50-100% FROM MATURE MEMBERSHIP GROWTH IN IMMATURE MARKETS 2022 MEMBERSHIP PENETRATION, % Basic-Fit’s markets of presence 25% Fitness membership penetration in the US: 22% 20% 21% 20% 19% 19% 17% 15% 16% 10%
Slide 16: Basic-Fit's Competitive Landscape
BASIC-FIT’S COMPETITIVE LANDSCAPE THERE ARE ONLY A FEW LARGE VALUE-FOR-MONEY FITNESS CHAINS 6 5 4 2 1 4 4 2 3 1 1 1 Countries HQ based Avg club 500 – 700 – 300 – 1,500 500 - 600 300 – 1,500 n/a 1,200~2,000 n/a 750 ~ 1,400 1,500 – 2,000 2,000 – 2,500 size (sqm) 2,200 1,500 1,500 Franchise No No Mainl
Slide 17: 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) 90 84 87 80 80 75 Years 71 70 50 1970 1990 2010 2021 2040 2060 INCREASE IN DIABETES – GLOBALLY(b) Million people 1,000 784 1998 2022 537 643 366 415 151 69% 86%
Slide 18: Our Growth Strategy
OUR GROWTH SU RM EOL, BASIC-FIT
Slide 19: Our Growth Pillars
OUR GROWTH PILLARS Yield management & other revenue • Basic-Fit is committed to keeping memberships fees low Maturation • Increase membership yield by of existing estate offering value-added products and services • Visible and consistent maturity profile New for new openings • Other revenue sources
Slide 20: Large White Space Potential
LARGE WHITE SPACE POTENTIAL 2,650-3,200 CLUBS POTENTIAL BY INCREASING THE FITNESS PENETRATION AND MARKET SHARE GAINS Netherlands 03/2024 GOAL HOW Belgium Germany 241 clubs 350 clubs Clusters Luxembourg 237 clubs 350 clubs Regional clubs France Big cities / Paris / 810 clubs 1,200 clubs idf / regiona
Slide 21: 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 memberships potential Simultaneous fit-out of cluster clubs Operational advantag
Slide 22: Exploring Franchise Opportunities
EXPLORING FRANCHISE OPPORTUNITIES MAXIMISING FUTURE GROWTH & RETURNS IN A FRANCHISE MODEL, POTENTIAL POSSIBLE WE CAN LEVERAGE BENEFITS OUTCOMES Faster growth Our own technology and opportunities Start franchise automation capabilities on our own Operate in more Our site selection and countries Buyin
Slide 23: Offering Unique Package and Experience to Maximise Franchisees Return
OFFERING UNIQUE PACKAGE AND EXPERIENCE TO MAXIMISE FRANCHISEES RETURN SMART REFURBISHMENT BASIC-FIT RETENTION APP REGISTRATION PROGRAMMES KIOSK LOW BREAK- EVEN POINT HOME CONTENT 24/7 VIRTUAL GROUP LESSONS LEAN STAFFING AUTOMATED MODEL EXPANSION PROCESS REMOTE STADIUM PURCHASING FACILITY GATE POWER
Slide 24: Embedded Growth Potential from Maturation
EMBEDDED GROWTH POTENTIAL FROM MATURATION CLUB MATURATION DRIVES EBITDA GROWTH +37% €390K Underlying club EBITDA increases with maturation of network €284K* Short-term: average mature club EBITDA less rent initially impacted by inflated cost base and to improve during 2023 and 2024 as yield per memb
Slide 25: Yield Management & Other Revenue
YIELD MANAGEMENT & OTHER REVENUE 4%* OF TOTAL REVENUE, HIGHLY PROFITABLE ADD-ONS / YIELD OTHER REVENUE SPORTS WATER DAY PASS PT & PHYSIO PERSONAL ONLINE Available in all Basic-Fit clubs For one-time visits 1,052 clubs with COACH Ca.20% membership penetration Sold at kiosks at the personal trainers C
Slide 26: 24/7 Connection with Our Members
24/7 CONNECTION WITH OUR MEMBERS 26
Slide 27: Why Our Model Works
WHY OUR MI@ D) SIL WORKS BASIC-FIT
Slide 28: 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 29: Compelling Consumer Proposition
COMPELLING CONSUMER PROPOSITION WE MAKE AFFORDABLE FITNESS AVAILABLE FOR ALL High quality estate State of the art equipment Exciting exercise programmes 29
Slide 30: Affordable Membership Options
AFFORDABLE MEMBERSHIP OPTIONS CURRENT NETHERLANDS OFFER* * Situation of 02-01-2024 in France 30
Slide 31: 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 Kiosk & Online registration Stadium Gate Service Seamless self-service Secure & Digital Customer Support integrates sign up and membership controlled entry
Slide 32: Engaging Member Journey
32 ENGAGING MEMBER JOURNEY 30 BASIC-FIT HAS A LONGER LENGTH 22 to 23 OF STAY THAN THE AVERAGE FITNESS CLUB months 18 to 19 20 months Basic-Fit has a longer average length of stay than the fitness industry in general and our figure is growing 10 Our average length of stay (LoS) at the time of our IPO
Slide 33: Well Structured Approach to Site Selection
WELL STRUCTURED APPROACH TO SITE SELECTION DRIVEN BY TECHNOLOGY, LOCAL MARKET INSIGHTS AND EXPERIENCE Research Analysis Approval / New Club Nationwide sourcing of Negotiation Opening sites (via real estate New club analysis agencies) (i.e. costs and Business manager, Fit-out complete memberships pro
Slide 34: Data Analysis
DATA ANALYSIS DETAILED ANALYSIS REMAINS FUNDAMENTAL TO OUR COMPETITIVENESS Inhabitants Age Other Fitness distribution demographics penetration Competitors Competitor Market Members analysis share Drive Time Analysis 34
Slide 35: New Club Ingrowth
NEW CLUB INGROWTH REACHING BREAK-EVEN AROUND MONTH SEVEN 35
Slide 36: Efficient Operations Drive Attractive Economics
EFFICIENT OPERATIONS DRIVE ATTRACTIVE ECONOMICS FURTHER OPERATING LEVERAGE AS WE CONTINUE TO GROW THE BUSINESS Unit returns of an average mature club Cost efficient operations Technology is an enabler of our business model and at the core of our operations MATURE CLUB ECONOMICS AVERAGE CLUB AVERAGE
Slide 37: Maintenance Capex Under Control
MAINTENANCE CAPEX UNDER CONTROL SMART REFURBISHING EXTEND THE USEFUL LIFE OF FITNESS EQUIPMENT AND REDUCE OUR ENVIRONMENTAL FOOTPRINT 1 2 Refurbished fitness equipment will Upgrade all the fitness look & feel like new equipment in a club at once 3 4 New warranty and service Longer lifetime fitness e
Slide 38: Sustainability
SUSTAINABILITY
Slide 39: Basic-Fit & Sustainability: A Natural Match
BASIC-FIT & SUSTAINABILITY A NATURAL MATCH Increasingly sedentary lifestyles On demand society Lifestyle diseases Increasing awareness of health & fitness Fitness is part of the solution Clubs close to where people live or work Low-priced membership fees Exercise whenever, wherever and however you w
Slide 40: Low Cost = Small Footprint
LOW COST = SMALL FOOTPRINT Fitness equipment is self powered LED lighting No swimming pools or sauna Water saving shower heads Water flow and shower time management Recycled paper paper-towels Etc. 40
Slide 41: Taking Steps
TAKING STEPS Awareness of One step beyond, Responsible company new regulations optimising positive aiming for positive impact and starting to impacts and address material tackling negative = Taking meaningful steps impacts ones 2018 2024 • Identify value drivers • Launch partnerships • Launch 2030 p
Slide 42: Our Go for a Fitter World Programme
OUR GO FOR A FITTER WORLD PROGRAMME Healthy Healthy Healthy people planet communities Improve health Reduce our environmental Invest at least €5 mln. to support and wellbeing for footprint by being carbon neutral our communities towards a fitter 15 mln. people* in our clubs and offices life and a mo
Slide 43: The Road to Carbon Neutral
THE ROAD TO CARBON NEUTRAL 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Nano- Remote facility Remote facility Remote facility testing grid roll-out optimisation Increasing number of clubs on green electricity Assess impact of business travel Mapping CO2 emissions Action plan for C02 emissi
Slide 44: Plugged In: New Energy Department
PLUGGED IN: NEW ENERGY DEPARTMENT INITIATIVES ARE RESULTING BEING ROLLED OUT IN Remote facility €35k annual energy costs per club in 2024 Purchase strategy and 2025 Phasing out natural gas 80% expected Investigating installing consumption fixed solar panels for 2024 On track to reduce consumption by
Slide 45: Reporting Regulations: Climate-Related Requirements
REPORTING REGULATIONS Legend Actual timing Expected timing GLOBAL LANDSCAPE OVERVIEW Reporting year 2022 2023 2024 2025 2026 and beyond Eligibility and alignment for 2 Eligibility and alignment for all six objectives in development EU Taxonomy climate objectives Disclosure of all Taxonomy-related KP
Slide 46: CSRD & ESRS: Disclosures
46 CSRD & ESRS: DISCLOSURES Examples: • The administrative, management and supervisory bodies’ roles and responsibilities General requirements General disclosures and access to expertise and skills regarding sustainability; ESRS 1 ESRS 2 • Risk management and internal control system in relation to s
Slide 47: Reporting Regulations: EU Taxonomy
REPORTING REGULATIONS EU TAXONOMY Examples of activities examined: 4.1 Electricity generation using solar photovoltaic technology 4.16 Installation and operation of electric heat pumps 4.25 Production of heat/cool using waste heat 7.4 Installation, maintenance and repair of charging stations for ele
Slide 48: Appendix
APPENDIX BASIC-FIT
Slide 49: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES 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 EBITDA less rent Club EBITDA adjusted for exceptional items and minus
Slide 50: 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 51: Thank You for Your Attention
THANK YOU FORBVOUWR LVIPUTSINTIUOWN BASIC-FIT