Xponential Fitness, Inc. · NYSE:XPOF
Xponential Fitness — Investor Presentation (September 2021)
36 slides from Xponential Fitness's investor presentation, Sep 13, 2021
Slide 1: Investor Presentation As of Q2 2021
Exhibit 99.1 INVESTOR PRESENTATION As of Q2 2021 Updated: September 10, 2021 N Y S E : X P O F | X P O N E N T I A L F I T N E S S 1Exhibit 99.1 INVESTOR PRESENTATION As of Q2 2021 Updated: September 10, 2021 N Y S E : X P O F | X P O N E N T I A L F I T N E S S 1
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER The information contained in this presentation is provided solely for the purpose of acquainting the readers with Xponential Fitness, Inc. (the “Company,” “Xponential” or “we”) and its business operations, strategies and financial performance. This presentation and any accompanying
Slide 3: Our Mission is to Make Boutique Fitness Accessible to Everyone
Our Mission is to Make Boutique Fitness Accessible to Everyone N Y S E : X P O F | X P O N E N T I A L F I T N E S S 3Our Mission is to Make Boutique Fitness Accessible to Everyone N Y S E : X P O F | X P O N E N T I A L F I T N E S S 3
Slide 4: Proven and Experienced Management Team
Proven and Experienced Management Team Anthony Geisler John Meloun Sarah Luna Ryan Junk Founder & CEO CFO President COO 6 Years at Xponential 3 Years at Xponential 6 Years at Xponential 4 Years at Xponential 19 Years of Industry Experience 22 Years of Industry Experience 13 Years of Industry Experie
Slide 5: Xponential is the Largest Global Franchisor of Boutique Fitness Studios
Xponential is the Largest Global Franchisor of Boutique Fitness Studios 3,603 $442M 1,839 Global Licenses Sold; North American Additional 730+ International Studios Open Globally System-wide Sales in 2020 (1) License Obligations 0 ~100% ~20M Permanent Studio Closures Studios Open as of June Workouts
Slide 6: Xponential's Evolution: From One to Nine Boutique Brands
March April 2021 Acquires 2020 Xponential’s Evolution: December Launches GO Digital 2018 Platform Acquires October From One to Nine Boutique Brands 2018 Acquires July 2018 Acquires 13 Studios March 71 Licenses 2018 Sold Acquires December 6 Studios 2017 November 76 Licenses Acquires 2017 599 Studios
Slide 7: Our Franchise Model
v Our Franchise Model N Y S E : X P O F | X P O N E N T I A L F I T N E S S 7v Our Franchise Model N Y S E : X P O F | X P O N E N T I A L F I T N E S S 7
Slide 8: Boutique Fitness: A Compelling Proposition
Boutique Fitness: A Compelling Proposition Mid- Boutique Premium HVLP At-Home Priced Fitness Gyms Gyms Fitness Gyms Community Centric High-Quality Programming Premium Amenities Accessibility Digital Offerings Instructor Attention Value Boutique Fitness: Customized, Personalized, Supportive N Y S E :
Slide 9: Xponential's Boutique Operations at a Glance
Xponential’s Boutique Operations at a Glance Studio Storefronts Retail Operations Class Sessions Accessible locations globally Branded & third-party product Small class sizes Ability to create ‘fitness rows’ Bring the studio home Flexible location (indoor/outdoor/digital) Average studio: Provides re
Slide 10: We Provide Robust and On-Going Support to Franchisees
We Provide Robust and On-Going Support to Franchisees The Proven Xponential Playbook Optimize studio prototype & Thoroughly vet Site selection, studio build-out Comprehensive investment franchisee candidates and design assistance pre-opening support Detailed studio-level Data-driven tools support In
Slide 11: Platform Synergies for All Stakeholders
Platform Synergies for All Stakeholders Strong Value Proposition for All Parties Franchisor: recurring revenue, asset-light model with strong FCF conversion Franchisee: strong studio economics, multi-brand opportunity, adaptable operating model Customer: 9 unique brands, quality and consistency, hig
Slide 12: Passionate, Growing and Loyal Consumer Base
Passionate, Growing and Loyal Consumer Base Xponential’s consumer is typically: • Female • 20 - 60 years old • Bachelor’s degree • Household income > $75k annually Consumers can purchase: • Recurring memberships or walk-in classes • 4x, 8x or unlimited memberships 1 • 8x membership: average price of
Slide 13: Target Studio-Level Economics Across Portfolio
Target Studio-Level Economics Across Portfolio ~$350k 25% - 30% (1) Initial Investment Operating Margin ~$500k 2.5 Average Annual Revenue Year Payback 6 - 12 ~40% (2) Month Ramp to Base Maturity Cash-on-Cash Return 1) Initial Investment is net of estimated tenant improvement benefits. 2) Base Maturi
Slide 14: Boutique Fitness: Fastest Growing Segment of Attractive Industry
Boutique Fitness: Fastest Growing Segment of Attractive Industry Global Fitness Industry U.S. Boutique Fitness Industry Size ($ in billions) 184M+ 21+ $26.2 $24.9 $23.6 Global Health and Fitness Consecutive Years of U.S. Annual $22.1 $21.1 (1) Club Members Growth Prior to COVID-19 $16.2 $8.8 $97BN $
Slide 15: COVID-19 Resulted in Temporary Closure of ~100% of Studios, But Zero Permanently Closed
COVID-19 Resulted in the Temporary Closure of ~100% of Xponential Studios, But Zero Permanently Closed Locations Resilience Through the Pandemic Impact on the Industry Resiliency of Xponential Fitness 8 58% ~100% ~100% Fitness Industry Major Fitness Companies Filed Studios Closed in Studios Open Rev
Slide 16: Poised to Continue to Take Market Share as the Economy Re-Opens
Poised to Continue to Take Market Share as the Economy Re-Opens • COVID-19 ignited an increased focus on health & wellness and a renewed emphasis on healthy, active lifestyles (1) Cumulative North America Studio Openings • Our consumers are actively returning to our studios with member 1,937 visits
Slide 17: Four Key Strategies for our Growth
Four Key Strategies for our Growth Grow Our Franchised Studio Base Across All Brands in North America Grow Our Brands and Studio Footprint Internationally Drive System-Wide Same Store Sales and Grow AUVs Expand Operating Margins and Drive Free Cash Flow Conversion N Y S E : X P O F | X P O N E N T I
Slide 18: Proven Portability Nationwide
Proven Portability Nationwide • 1,824 North American studio as of Q2- 21, with potential U.S. whitespace of 15 82 (1) 6,900 69 • Brands have geographic reach & 13 15 78 national appeal 279 14 • 60%+ of U.S. population lives within 10 (2) miles of an XPO studio • No significant regional concentration
Slide 19: Growing International Presence
Growing International Presence Scalable Master Franchisor Strategy Focused on Select Countries with Compelling Demographics (3) Where We Have Open Studios Agreements in Place #1 Fitness Market $97BN #2 Fitness United States Global Health and Fitness Club Industry in 2019 Market Germany #6 Fitness Ma
Slide 20: XPASS: Eight Brands, One Membership
XPASS: Eight Brands, One Membership • Enhances Consumer Experience – three flexible packages: • Explore : $29 / month • Expand: $49 / month • Experience: $69 / month (most popular) • Drives Retention – introduces consumers to new brands & verticals, reducing attrition and increasing stickiness • Dyn
Slide 21: Strong Digital Engagement: All-Access GO, Access Beyond Walls
Strong Digital Engagement: All-Access GO, Access Beyond 4 Walls • Live & on-demand classes $19 $29 across all nine verticals Per Month for Each Per Month for (1) Individual Brand All-Access • Access to brands not currently in members’ region 2,500+ • Variety of class times and Digital Workouts worko
Slide 22: Financial Overview
Financial Overview N Y S E : X P O F | X P O N E N T I A L F I T N E S S 22Financial Overview N Y S E : X P O F | X P O N E N T I A L F I T N E S S 22
Slide 23: Revenue Overview
Revenue Overview Revenue Overview ~79% of YTD 2021 Revenue Recurring Recurring Revenue Franchise Revenue • Franchise Revenue – Includes license fees, royalty fees, technology fees, transfer fees and instructor training Franchise Marketing Fund • Royalty Fees – Typically 7% of the gross sales of each
Slide 24: Top-Line Momentum Across the Xponential Platform
Top-Line Momentum Across the Xponential Platform (1) (1) System-Wide Sales ($M) Same Store Sales COVID-19 COVID-19 ~8% Average Same Store Sales in Eight Quarters Pre-COVID 1) Represents system-wide sales and same store sales for North America based on studios open for 13+ months. Adjusted for the Ru
Slide 25: Recovery in Studio Performance
Recovery in Studio Performance (1) (2) LTM AUV ($000s) Run-Rate AUV ($000s) COVID-19 COVID-19 1) Represents LTM AUVs for North American studios open for 13+ months. Adjusted for the Rumble acquisition. 2) Represents run-rate AUVs for North American studios open for 6+ months. Adjusted for the Rumble
Slide 26: Continued Strong Performance in Q2 2021
Continued Strong Performance in Q2 2021 ($ in millions) Q2 2021 Q2 2020 % Change Our Recent Performance: Revenues $36 $21 67% Adjusted EBITDA $8 ($3) NM Q2 2021 New Studio Openings 59 57 4% System-wide Sales $172 $61 179% Topline Performance Driven by Growth In Studio Openings and Same-Store Sales S
Slide 27: Financial Summary & 2021 Expectations
Financial Summary & 2021 Expectations (1) (1)(2) North American Studios Open System-Wide Sales ($M) 3,568 3,273 3,009 $695 $560 1,744 2,086 1,561 $442 1,538 $392 $389 1,015 1,824 1,712 1,471 $303 1,071 2018 2019 2020 YTD'21 2018 2019 2020 2021 Studios Open Sold Studio Pipeline Actual Estimate (2) (2
Slide 28: FY 2021 Guidance
FY 2021 Guidance % Change ($ in millions) Low High 2020 at Midpoint Revenues $135.5 $137.0 $107 28% Adjusted EBITDA $22 $23 $10 129% New Franchised Studio Openings 215 235 250 -10% System-wide Sales $690 $700 $442 57% N Y S E : X P O F | X P O N E N T I A L F I T N E S S 28FY 2021 Guidance % Change
Slide 29: Investment Highlights
Investment Highlights • Diversified portfolio of leading boutique fitness brands • Market leading position with significant scale • Passionate, growing and loyal consumer base • Xponential Playbook supports system-wide operational excellence • Asset-light franchise model and predictable recurring re
Slide 30: Appendix
Appendix N Y S E : X P O F | X P O N E N T I A L F I T N E S S 30Appendix N Y S E : X P O F | X P O N E N T I A L F I T N E S S 30
Slide 31: YTD Performance
YTD Performance: 2021 YTD YTD ($ in millions) % Change Q2 2021 Q2 2020 Revenues $65 $53 22% Adjusted EBITDA $12 $5 137% New Franchised Studio Openings 117 114 3% System-wide Sales $303 $222 37% Same Store Sales 22% -29% NA LTM Average Unit Volumes $312 $371 -16% Note: All figures as of June 30, 2021
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjustment Detail Year Ended Three Months Ended Three Months Ended December 31, March 31, June 30, ($ in millions) ◼ Represents non-cash equity-based 2018 2019 2020 2020 2021 2020 2021 1 compensation related to profit interest units awarded to key management and direct
Slide 33: Capital Structure Supports Continued Growth
Capital Structure Supports Continued Growth As of Pro Forma • The COVID-19 pandemic impacted our business for most of ($ in millions) June 30, 2021 Adj. Post-IPO the LTM period, negatively impacting Adj. EBITDA (1) $20 $9 $30 Cash & Cash Equivalents • As our business continues to recover from the pa
Slide 34: Up-C Structure Overview
Up-C Structure Overview The diagram below depicts our organizational structureimmediately following this offering, after giving effect to the recapitalization and reorganization transactions, assuming no exercise by the underwriters of their option to purchaseadditional shares of Class A common stoc
Slide 35: EPS Calculation
EPS Calculation Three Months Ended Six Months Ended 30-Jun-21 30-Jun-21 Numerator: Pro forma net loss ....................................................................... ( 8,001) (12,751) Add: Pro forma net loss attributable to non-controlling interests ..........................................
Slide 36: Contact: Addo Investor Relations
CONTACT: Addo Investor Relations investor@xponential.com N Y S E : X P O F | X P O N E N T I A L F I T N E S S 36CONTACT: Addo Investor Relations investor@xponential.com N Y S E : X P O F | X P O N E N T I A L F I T N E S S 36
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