The Beachbody Company, Inc. · NASDAQ:BODI
The Beachbody — SPAC Merger (February 2021)
35 slides from The Beachbody's SPAC merger presentation, Feb 10, 2021
Slide 1: The Leading Holistic Health and Wellness Platform That Delivers Results
THE LEADING HOLISTIC HEALTH AND WELLNESS PLATFORM THAT DELIVERS RESULTS 1
Slide 2: Disclaimer
This presentation (the “Presentation”) contemplates a business combination (the “Transaction”) involving Forest Road Acquisit ion Corp. (“FRX”), Beachbody, LLC (“Beachbody”) and MYX Fitness LLC. (“MYX,” and, together with Beachbody, the “Target Companies” a nd, together FRX and Beachbody following t
Slide 3: Presentation Speakers
PRESENTATION SPEAKERS Sue Collyns President and CFO 3 THE BEACHBODY COMPANY Carl Daikeler Co - founder, Chairman and CEO Jon Congdon Co - founder, CEO, Openfit Kevin Mayer Strategic Advisor, FRX Tom Staggs Director, FRX
Slide 4: Beachbody Sits at the Center of Three Mega-Trends
4 ▪ Clearly in focus on the heels of the pandemic ▪ Consumer (and investor) dollars continue to flow here ▪ Long - tail for sustainable growth THE BEACHBODY COMPANY SITS AT THE CENTER OF THREE MEGA - TRENDS Digital Subscription ▪ High value in monetization of content ▪ Delivering higher engagement a
Slide 5: Scaled, Profitable At-Home Fitness and Nutrition Market Leader
SCALED, PROFITABLE AT - HOME FITNESS AND NUTRITION MARKET LEADER WITH HOLISTIC SOLUTION COMPELLING MACRO TAILWINDS FOR AT - HOME FITNESS INDUSTRY, PARTICULARLY POST - COVID SUBSTANTIAL REVENUE AND EBITDA GENERATION SEASONED MANAGEMENT TEAM WITH OVER 22 YEARS OF EXPERIENCE TOGETHER SIGNIFICANT NEAR -
Slide 6: Mission
6 Help people achieve their goals and enjoy a healthy fulfilling life. THE BEACHBODY COMPANY MISSION
Slide 7: Health, Wellness and Fitness Industry Is Undergoing a Fundamental Transition
Beachbody has been consistently expanding its market share in the $1.5 trillion health and wellness industry 1 72% of Americans are overweight or obese 2 $10 billion of annual consumer spending is expected to leave the gym sector as customers shift to at - home options 3 Digital at - home fitness sp
Slide 8: The Holistic Beachbody Approach Drives Customer Results
THE HOLISTIC BEACHBODY APPROACH DRIVES CUSTOMER RESULTS, WHICH DRIVES OVER $1BILLION IN REVENUE 1 Community Digital Subscriptions Connected Fitness Nutrition Products 1. 2021E Forecast. 8
Slide 9: The Total Health & Wellness Solution
THE TOTAL HEALTH & WELLNESS SOLUTION DIGITAL SUBSCRIPTION, NUTRITION, AND CONNECTED FITNESS PLATFORMS APPEAL TO BROAD MARKET SEGMENTS AND ALL MODALITIES 9
Slide 10: Digital Subscriptions
10 DIGITAL SUBSCRIPTIONS
Slide 11: Key Metrics
KEY METRICS As of 12/31/20. 89% GROSS MARGIN ON DIGITAL SUBSCRIPTIONS 0% 5% 10% 15% 20% 25% 30% 35% 2015 2016 2017 2018 2019 2020 32% 0.0M 0.5M 1.0M 1.5M 2.0M 2.5M 3.0M 2015 2015 2016 2017 2018 2019 2020 2.6M 2.6M PAID DIGITAL SUBSCRIPTIONS MARCH LAUNCH AS OF DEC YEAR END $450M+ REVENUE 2021E 180,00
Slide 12: Our Catalog of Premium On-Demand Content Is Unmatched
12 OUR CATALOG OF PREMIUM ON - DEMAND CONTENT IS UNMATCHED IN THE INDUSTRY Ideation Development Marketing Merchandising Data & Analytics
Slide 13: Leader in Fitness Content: Workout Views by Program
31.5 21.9 15.6 13.5 11.9 10.8 9.1 7.8 7.8 5.7 5.6 5.0 3.0 2.4 2.2 13 ¹ Workout Views as of December 31, 2020 * Includes all views per franchise LEADER IN FITNESS CONTENT PAST, PRESENT, AND FUTURE TREMENDOUS ASSET VALUE IN BEACHBODY LIBRARY DUE TO EVERGREEN NATURE OF PROGRAMS 2016 - 2018 2011 - 2015
Slide 14: Social Commerce
14 SOCIAL COMMERCE MACRO - INFLUENCERS 400K+ Beachbody Coaches Micro - influencers drive sales across their social networks 125M+ Reach of Social Influencers Drive sales at a macro level to a broad customer base BODgroups Fitness and Nutrition Social Commerce Platform Creates a peer - to - peer mark
Slide 15: Openfit Is Built on Beachbody's Core Competencies
Celebrity and fitness influencer model to drive higher volume of new subscriptions Live and on - demand content starring fitness celebrities and influencers to drive engagement OPENFIT IS BUILT ON BEACHBODY’S CORE COMPETENCIES Obi Vincent 930K Followers Andrea Rogers 103K Followers Shay Mitchell 32M
Slide 16: Live Classes Overseen by Certified Trainers
16 LIVE CLASSES OVERSEEN BY CERTIFIED TRAINERS Users can turn their camera on, allowing trainers to give feedback on form and encouragement, just like an in - person studio fitness class 400+ LIVE classes per week in Xtend Barre, strength training, Pilates, weights, kickboxing, yoga, stretching, and
Slide 17: Connected Fitness
17 CONNECTED FITNESS
Slide 18: An Exciting Connected Fitness Experience for a Wider Audience
18 Holistic on/off - bike fitness solution Lower cost than competitors ($1,299) $29 / month subscription 360 - degree swivel - screen tablet Heart - rate - based training approach Commercial - grade equipment Leverages Beachbody’s distribution, marketing experience, and content creation capabilities
Slide 19: MYX Fitness at a Glance
MYX FITNESS AT A GLANCE 19 27,000+ BIKES SOLD 15 WORKOUTS PER ACTIVE SUBSCRIBER PER MONTH SUBSCRIPTION MARGINS 2021E $100M REVENUE 2021E $29 PER MONTH SUBSCRIPTION COST 89 % RETENTION MOM 98% Rounded numbers as of 12/31/20. “Must - have fitness gear for 2020.” “If you’re an elite spin class assassin
Slide 20: Holistic At-Home Fitness Experience: Points of Differentiation
20 HOLISTIC AT - HOME FITNESS EXPERIENCE POINTS OF DIFFERENTIATION MYX subscribers get access to a wide array of workouts that are personalized based on a subscriber’s heart rate data and preferences SCIENCE - BASED HEART RATE COACHING MYX personalizes each subscriber’s training program and trainer
Slide 21: MYX Will Be the Growth Engine
21 MYX WILL BE THE GROWTH ENGINE Connected Fitness Device Sales – 300K+ Digital Subscribers – 600K Revenue - $700M FULLY INTEGRATED PLATFORM LEVERAGING THE POWER OF OPENFIT AND BEACHBODY FORECASTED STEADY - STATE PROJECTIONS (2024) MYX POWERED BY OPENFIT MYX POWERED BY BEACHBODY BEHIND OUR CONNECTED
Slide 22: Nutrition Products
22 NUTRITION PRODUCTS
Slide 23: Digital Subscriptions Create Marketing Opportunities for Nutrition Subscriptions
DIGITAL SUBSCRIPTIONS CREATE MARKETING OPPORTUNITIES FOR NUTRITION SUBSCRIPTIONS THAT ACCELERATE REVENUE $450M $560M 1 Full year forecast for 2021E. 2021E REVENUE 1 2021E REVENUE 1 3.7M DIGITAL SUBSCRIPTIONS 1 2021E 430K NUTRITION SUBSCRIPTIONS AND OTHER SALES 1 2021E 23
Slide 24: Diverse Portfolio of Branded Nutrition Products
DIVERSE PORTFOLIO OF BRANDED NUTRITION PRODUCTS FITNESS CONTENT IS THE LEVERAGE TO CROSS - SELL NUTRITION PRODUCTS 24 OTHER NUTRITIONAL AND ACCESSORIES PRE - AND POST - WORKOUT SNACK BARS WHEY AND PLANT PROTEIN PLANT PROTEIN SUPERFOOD GREENS PRE - WORKOUT HYDRATION WHEY PROTEIN
Slide 25: Growth and Investment Opportunities
GROWTH AND INVESTMENT OPPORTUNITIES 25
Slide 26: The Leadership Team
THE LEADERSHIP TEAM Sue Collyns President and CFO Michael Neimand President, Beachbody Robert Gifford President and COO Sunil Kaki EVP, Growth and Acquisition Marketing, Beachbody and Openfit Selina Tobaccowala Chief Digital Officer, Openfit 26 THE BEACHBODY COMPANY Irfan Ranmal EVP, Data, Analytics
Slide 27: Significant Opportunities to Accelerate Growth
SIGNIFICANT OPPORTUNITIES TO ACCELERATE GROWTH 27 Increased investment in customer acquisition while maintaining historical return profile Accelerating international expansion Tech and supply chain improvements, enabling more rapid development of nutrition products Market and product expansion throu
Slide 28: Financial Overview
FINANCIAL OVERVIEW 28
Slide 29: Historical and Projected Financials: Revenue
THE BEACHBODY COMPANY GROUP. CONFIDENTIAL AND PROPRIETARY. THIS INFORMATION MAY NOT BE DISCLOSED OR REPRODUCED. REVENUE (2018A – 2025E) COMMENTARY THE BEACHBODY COMPANY HISTORICAL AND PROJECTED FINANCIALS ($ in millions) 29 $581 $503 $526 $560 $634 $783 $992 $1,261 $209 $253 $326 $456 $649 $879 $1,1
Slide 30: Adjusted EBITDA (2018A-2025E)
THE BEACHBODY COMPANY GROUP. CONFIDENTIAL AND PROPRIETARY. THIS INFORMATION MAY NOT BE DISCLOSED OR REPRODUCED. ADJUSTED EBITDA (2018A – 2025E) COMMENTARY ($ in millions) 30 $68 $78 $32 ($30) $66 $181 $348 $532 2018A 2019A 2020E 2021E 2022E 2023E 2024E 2025E Adj. EBITDA % of Revenue 8.6% 10.3% 3.6%
Slide 31: Transaction Summary
THE BEACHBODY COMPANY GROUP. CONFIDENTIAL AND PROPRIETARY. THIS INFORMATION MAY NOT BE DISCLOSED OR REPRODUCED. TRANSACTION SUMMARY PRO FORMA CAPITALIZATION AND OWNERSHIP FRX TRANSACTION DETAILS 31 1 Shares and ownership based on fully diluted shares outstanding using the treasury stock method. 2 Du
Slide 32: Beachbody Sits at the Center of Three Mega-Trends
32 ▪ Clearly in focus on the heels of the pandemic ▪ Consumer (and investor) dollars continue to flow here ▪ Long - tail for sustainable growth THE BEACHBODY COMPANY SITS AT THE CENTER OF THREE MEGA - TRENDS Digital Subscription ▪ High value in monetization of content ▪ Delivering higher engagement
Slide 33: Operational Benchmarking
33 Operational Benchmarking Connected fitness Source: FactSet as of 01/08/2021. Revenue CAGR CY 2021 - 2023 Adj. EBITDA margin % CY 2022 Adj. EBITDA margin % CY 2021 33% 21% 18% 14% 29% 43% 27% 21% 8% 6% Gross profit margin % CY 2022 Gross profit margin % CY 2021 Digital subscription Growth consumer
Slide 34: Valuation Benchmarking
34 Valuation Benchmarking Connected fitness Source: FactSet as of 01/08/2021. Beachbody multiples implied based on $2,934M EV. EV / CY 2022 Revenue 2.0x 7.9x 5.7x 3.7x 7.9x 14.6x 12.2x 3.8x 3.5x 3.3x Avg: 5.7x Avg: 7.5x 44.4x 37.5x NM 18.4x NM NM 28.5x NM 18.2x 16.8x Avg: 28.0x Avg: 21.2x 2.6 x 9.3
Slide 35: The Leading Holistic Health and Wellness Platform That Delivers Results
THE LEADING HOLISTIC HEALTH AND WELLNESS PLATFORM THAT DELIVERS RESULTS 35