Capital

Markets Day
19 May 2022
Forward-looking statement disclaimer

This presentation should be read in conjunction with the announcement published by The Gym Group plc on 19 May 2022.

This presentation and information communicated verbally to you contains certain projections and other forward-looking statements with
respect to the financial condition, results of operations, businesses and prospects of The Gym Group plc.

These projections and forward-looking statements are based on current expectations and involve risk and uncertainty because they relate to
events and depend upon circumstances that may or may not occur in the future. There are several factors which could cause actual results
or developments to differ materially from those expressed or implied by these forward-looking statements. Any of the assumptions underlying
these projections and forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the
projections or forward-looking statements may not actually be achieved.

Investors or other recipients are cautioned not to place undue reliance on any projection or forward-looking statements contained herein.

Save as required by law or by the Listing Rules of the UK Listing Authority, The Gym Group plc undertakes no obligation to update or revise
(publicly or otherwise) any projection or forward-looking statement, whether as a result of new information, future events or other
circumstances. Neither this presentation nor any verbal communication shall constitute an invitation or inducement to any person to
subscribe for or otherwise acquire securities in The Gym Group plc.

Capital Markets Day 2022 2

Welcome &
introduction
Richard Darwin,
Chief Executive Officer
Who you will meet today

Richard Darwin Mark George Ann-marie Murphy

Chief Executive Officer Chief Financial Officer Chief Operating Officer
• CEO since September 2018 • Joined TGG as CFO in • COO since February 2022
(CFO 2015 - 2018) October 2018 (previously Chief People Officer
• Formerly CFO of Essenden plc • Previously Deputy CFO since joining The Gym Group in
(now Ten Entertainment Group of Auto Trader plc April 2018)
plc) and Paramount • Held senior roles in finance, • Has over 15 years’ experience
Restaurants strategy and investor relations across a variety of senior Human
• Held senior roles at at Asos Plc and Tesco Plc Resources roles, particularly in
Diageo plc, Hard Rock the travel and retail industries
Cafe International and • Qualified executive coach from
The Rank Group Plc the highly regarded Henley
programme

Jasper McIntosh Nick Shelmerdine Emily Kortlang

Chief Information Officer Director of Strategy & Group Brand &
• IT Director since June 2014, and Corporate Development Marketing Director
primary IT and digital consultant to • Joined TGG as Group Brand &
The Gym Group since 2011 • Joined TGG in November 2021
• Former Associate Partner at OC&C Marketing Director in October 2021
• Previously delivered high profile • Formerly Brand Director for Beats
projects for GlaxoSmithKline, Strategy Consultants and MD at The
Restaurant Group plc, focused on by Dr. Dre, at Apple
Global Fund, the NHS and the
French Presidential Palace building a food delivery business • Prior to that, held marketing roles
and major transformation projects at Red Bull and Fallon, responsible
• Awarded a top 20 place in the CIO for brand, social media, creative,
100 list that recognises the most • Expertise in growth strategy, M&A,
business development and change campaign & retail marketing
transformational and disruptive
CIOs in the UK in the Consumer and Leisure space

Capital Markets Day 2022 4

The story so far…
Rapid growth and Continued growth and Managing through COVID
Strategic expansion
proof of business model investment in scale and recovery

2008 2015 2019 2020 2021 2025

First gym opened Successful IPO on Gyms and members Business significantly Revenue recovery starts 300+ sites
in Hounslow London Stock Exchange more than doubled impacted by COVID-19
in 4 years Accelerated growth plan £95-105m EBITDA
Rollout slowed to
Funded 20 new sites reduce capital spend £40-50m PBT
from operating cash flow

Number of gyms Number of members1 EBITDA (£m)2

794k
£49m
202 724k 718k
183 £39m
175 607k
159 578k £31m
£25m
128 448k £20m
£6m £15m £6m
376k £12m
89
293k
74
225k
55
16 166k
10 40 57k -£10m
1 5 32 8k 26k 96k

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

1) 825k members at Feb 2022.

2) EBITDA for 2012 and 2013 is presented on an aggregated basis as the Group did not constitute a single legal group until 13 June 2013. EBITDA for 2012-2014 has not been restated for IFRS 16.

Capital Markets Day 2022 5

Business transformed since the IPO

01 02
Significant investment made in core Rapid growth in estate
infrastructure to run business of 200+ gyms • 104 organic new sites
• New Tech platforms to support enhanced • 36 sites acquired through
Member Experience (via Website and App) four separate acquisitions
• ERP system (Workday)
• New Gym Team model (Personal Trainers)

03 04
Market-leader in sustainability Great place to work
• First Carbon Neutral Gym in UK • #25 in Glassdoor’s top 50 places to
• Commitment to Net Zero by 2035 work for in the UK

• Rated AAA by MSCI • High calibre Gym and Central

Support teams
• First UK Health & Fitness Business
to measure Social Value targets

Capital Markets Day 2022 6

Strong proposition appealing to a wide demographic
with multiple growth drivers

Member demographic

High quality, low cost gym proposition Affluent

Urban achievers
Rated “Excellent” on Trustpilot (UK: 23%)
adversity
Consistently strong member satisfaction scores (UK: 16%)
14%
c. 50 million gym visits p.a. 22%
Rising
18% prosperity
(UK: 10%)
Growth drivers
Financially 24%
stretched
(UK: 23%) 22%
Like for
Expanding Comfortable
Site Yield like growth
consumer communities
expansion optimisation from new
appeal (UK: 27%)
products

Capital Markets Day 2022 7

Business model
enables self Strong

financing growth demand for

health and
fitness

Reinvestment
High quality,
in estate
great value
and growth
gyms
of new sites
Self-financing
growth delivering
financial returns
(30% ROIC)
Strong
Growing
financial
membership
returns and
base
social value

Scale benefits
from operating
200+ sites

Capital Markets Day 2022 8

Our plan to 2025

Financial drivers 2025 targets

Revenue Recovery 300+

of existing estate sites

25-30 £95-105m
new sites per year EBITDA

£40-50m
PBT

Capital Markets Day 2022 9

Areas of focus today

Low cost gym market Key strategic initiatives Financial potential

Financial outlook
Market opportunity Enabling faster growth
and capital allocation

Next generation
technology

Revenue
optimisation

Brand

Capital Markets Day 2022 10

Market opportunity
Richard Darwin,
Chief Executive Officer
Unique market opportunity to accelerate expansion
• Strong and resilient demand for health and fitness
• Low cost fastest growing segment
Large &
• Additional opportunity in small towns
growing
market

• Distress in retail / leisure; greater

availability of sites at affordable rents • Growth in low cost an existing theme
• Reduced competition for target sites Attractive Unique market Accelerated • Large proportion of market weakened
property opportunity move to
• End of rent moratorium • Cost of living squeeze
market low cost

Scale • Economies of scale results in

advantage two clear market leaders
• Challenges for smaller operators
led to slow growth and exit

Capital Markets Day 2022 12

 Large &
growing

Long-term growth and resilience in the UK

market

Unique
market

gym market
Attractive Accelerated
property opportunity move to
market for The Gym low cost
Group

Scale
advantage

% of UK population that are members of a health & fitness club

15.6
16%
14.0 • Memberships of health & fitness clubs in structural
12%
11.9
10.5
long-term growth
7.3
• Private sector drives increased penetration; led
8%
4.6 5.1 by low cost gyms
4%
• Market resilient to economic downturns
0% • Strong rebound in 2021 post COVID-19
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Total Private Public

UK gym membership (m)

9.9 10.4 2015-19 CAGR
9.3 9.8 9.6
8.7
7.7 8.0 8.3
1.9 2.2 2.5 2.8 8.3 Total +5%
0.7 0.9 1.3
0.4
Low cost +21%
4.2 4.1 4.1 4.1 4.0 4.2 4.1 4.2
Mid-market & Premium +1%
3.1 3.2 3.3 3.3 3.4 3.4 3.3 3.4 Public +1%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Low cost
Share %
5% 9% 11% 15% 20% 22% 25% 27%

Source: LDC State of the Industry Report 2019 (as at March); Deloitte EHFMR 2022 for 2020-21 data (as at year end), segment split not available

Capital Markets Day 2022 13

 Large &
growing

Rapid growth across various categories with further

market

Unique
market

opportunity in small towns

Attractive Accelerated
property opportunity move to
market for The Gym low cost
Group

Scale
advantage

Number of sites by category 2016-211 • Substantial growth in high performing City Residential
(+147%) and Greater London (+88%) locations
43
City Residential +63
106 • City Centre now ex-growth

34 • Model proven in Town locations (<10,000sq.ft)

Greater London +30
64
• Developing format to operate in Small Towns
12
City Centre +4
16

0
Town +15
15

0 2016
Small Town +1
1 2021

Plan to deliver 25-30 sites from expansion of current categories;

with additional sites to come from Small Towns
1) Number of UK sites at year end

Capital Markets Day 2022 14

 Large &
growing

An increased interest in health & fitness post-COVID

market

Unique
Attractive market Accelerated
property opportunity
market for The Gym
move to
Group low cost

Scale
advantage

Fitness frequency now above pre-COVID levels Sustained opportunity to target people interested in
and expected to increase further the gym but put off by cost
UK Fitness frequency vs pre-COVID levels1 Main reasons to not join a gym2

Cost / expense 28%

31%
41% Uncomfortable / intimidated 11%

Prefer to exercise outdoors 10%

Prefer to work out at home 9%

Don’t like the gym environment 7%

50%
Not interested enough 7%
54%
Unlikely to use 7%
More often
Don’t need a gym 5%
19% No change
6% Less often Hygiene / Infection concern 4%
Current fitness Intended future
frequency level frequency level Don’t like the contracts 3%

1) % change versus pre-COVID levels, Deloitte EHFMR 2022

2) Top 10 reasons to not join a UK gym from non-gym members, TGG U&A Survey 2021

Capital Markets Day 2022 15

 Large &
growing

Post COVID structural trends accelerating move

market

Unique
market Accelerated

to low cost
Attractive
property opportunity
market for The Gym
move to
Group low cost

Scale
advantage

01 02 03
Growth in low cost an existing Parts of Health & Cost of living crisis will increase
theme pre-COVID Fitness market weakened focus on low cost options

+21% CAGR pre-COVID Premium & mid-market distress; Budget operators typically
vs. +1% rest of market restructuring and administration outperform the market during
recession / downturns
2015-19
CAGR %
+21%

+1% +1%

Low-cost Mid-market Public

Leisure / public sector
& Premium under threat; a number remain closed
Consumers consider fitness /
Growth in low cost segments gym access a necessity but
has been a continued theme may look to trade down
across a range of sectors

Capital Markets Day 2022 16

 Large &
growing

Scale advantages enhance strong market position

market

Unique
Attractive market Accelerated
property opportunity move to
market for The Gym low cost
Group

Scale
advantage

• Economies of scale result in a UK number of low cost gyms, 2016-20212

market with two clear leaders
78%
26.7%
(+74%)
• Challenges for smaller operators +125
of growth from
led to slow growth and exit top 2 players
295
• The Gym Group fastest relative
market share
(+127%)
growth (+127%) in 2016-21 Number of sites vs low +113
cost gym market as of
2021 year end.
• 78% of growth in low cost gyms 202
from top two players; combination 170
of organic growth and acquisition +15
+26 +27
• Strong presence in Greater London 104
89 89
(64 sites)1 81 74
55
47

Other

1) The Gym Group number of sites inside M25 as of 2021 year end 2016 2021
2) Company estimates for the number of sites per low cost operator as at year end; low cost defined as majority of membership options <£25 per month and <£30 within London

Capital Markets Day 2022 17

 Large &
growing

Attractive property market creates opportunities

market

Unique
Attractive market

to expand estate and achieve historic returns

Accelerated
opportunity move to
property for The Gym low cost
market Group

Scale
advantage

• Distress in retail / leisure - greater availability of

target sites at affordable rents Strong pipeline targeting 30% ROIC
Sites in Fit out / Pre-sale 9
• Opportunity in property market expected to Exchanged / Lease Complete 13
continue into 2023 and beyond Heads of terms / In legals 21
Offers out 58
• Rent moratorium ended March 2022;
Total 101
further boost to availability of property
• General retail sites
New-site openings/acquisitions 2016 vs 2022
• Other gyms (direct from landlord);
acquired three sites already
17
61% 2016
• Tailwinds to support acceleration of new-site rollout: of 2022 2022
development
• 28 sites to open in 2022 - fully secured from retail parks

• 25-30+ in 2023 and 2024 - partly secured

5
4
3 3
2 2
1 1 1 1 1 1 1

Retail Park High Street Mixed use Supermarket Office Shopping Stand alone
development Centre

Capital Markets Day 2022 18

Significant headroom in low cost gym market

Low cost gym members penetration UK potential for low cost gyms
% of total population Number of low cost gyms
7.0 – 8.9% 1700 - 1900

5.0 – 6.9% 1200 - 1400

4.2%
3.4% 3.7% 756
2.9%
2.0%
1.5%
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 2026F 2030F 2022 2026F 2030F
PwC Forecast Management Estimate

• Fitness penetration in Northern Europe above UK • Pre-COVID PwC research2 potential for c.1,200-1,400
(Denmark 19%, Norway and Sweden 22%)1 low cost gyms in 2026
• PwC forecast 17% for UK by 2026 • Management forecast c.1,700-1,900 gyms by 2030
• Forecast penetration: • Growth potential of low cost:
• 5.0-6.9% by 2026 (PwC forecast) • Up to 2x by 2026
• 7.0-8.9% by 2030 (Management estimate) • Up to 2.5x by 2030
• Management estimate extends low cost growth to 2030

1) As at 2019; % of total population, Deloitte EHFMR 2020

2) PwC: UK low cost gym market headroom assessment January 2019

Capital Markets Day 2022 19

Enabling faster growth
Ann-marie Murphy,
Chief Operating Officer
We will enable faster growth through...

01 02 03
Outstanding Highly Flexible model
product & satisfied & product
operational members formats
delivery

Capital Markets Day 2022 21

We have a high quality, great value product 01 Outstanding product &
operational delivery

Low cost Free Access to Friendly, helpful

no contract group exercise 200 top quality staff & access to
membership classes digital classes personal trainers

Convenient
High quality Multi-gym Bring a
gym equipment locations access* friend*
with 24/7 access

* Available with LIVE IT membership

Capital Markets Day 2022 22

The most successful operating model 01 Outstanding product &

in the market
operational delivery

Market leading flexible Recognised as a great place

operating model to work
Fitness trainer Model • #25 in Glassdoor’s top 50 places
to work in the UK
Employed contract – 12 hours a week
• Won Employee Excellence
Paid at top banding NMW Award for Best Approach to Covid

Reduced rental agreement • 93% approve of CEO &

recommend on Glassdoor*
Self-employed personal trainer
business opportunity

Keep 100% of earnings

No license fee

Capital Markets Day 2022 23

 01 Outstanding product &
operational delivery

4 operational performance pillars

People / member service / safe, clean and legal / profit

Safe, clean and legal

We are consistently delivering high levels of quality audits,
96.8% on average
Constantly looking for areas to improve. We never stop our
focus to ensure our gyms are safe, clean and compliant

4+ Visit frequency, driving Social Value

4+ visits per month

Highly effective Aligns our commercial and social interests with our
members interest - becoming and staying healthy and fit
operational Drives member engagement
delivery at scale Links into improving tenure and reducing churn

Capital Markets Day 2022 24

Our members ‘love us’ 02 Highly satisfied
members

“ Immediately I noticed the abundance of diversity in the

gym.. I did the burn 400 class and loved it. All very Engaged colleagues delivering
tidy, clean and perfectly functional.”
great member service satisfaction
London Walthamstow
Increased our member service
score +8pts over 12 month period
“ The gym is always so clean and welcoming, the staff from Mar 2020 to Apr 2021 (57%)
are great and never make you feel silly and are all so
approachable. This makes me really enjoy working out Focusing on clean, friendly and inclusive gyms has
which encourages me to come which is great for my seen us further increase to 58% across the estate
fitness goals! 10/10 gym.”
Bristol Longwell Green

“ I really like the layout of The Gym, and always felt that
there was plenty of equipment and a good range too.
Overall, a great experience and I have referred many
of my friends to The Gym West End!”
Glasgow West End Our reviews increased by 23.1% in March 2022

1) Average monthly churn 2022 versus 2021 (Apr – Dec)

Capital Markets Day 2022 25

We provide affordable fitness for all 02 Highly satisfied
members

Age Affluence Location

Affluent
Under 18 4% achievers
Urban (UK: 23%)
adversity
18 - 21 20%
(UK: 16%) 22% 14%
22 - 25 19% Rising
18% prosperity
(UK: 10%)
26 - 35 29%
24%
36 - 45 15%
Financially 22%
stretched Comfortable
46 - 55 8% (UK: 23%) communities
(UK: 27%)
Over 55 4%
32% of our estate is in the 20 most c.50% of the UK population live within 15
deprived local authorities min drivetime of at least one of our gyms

Capital Markets Day 2022 26

Our formats reflect member requirements 03 Flexible model &
product formats

01 Live classes
Solutions from full studio to open
05 Product solutions
Range of kit tailored to membership profile
plan flexible spaces and usage

02 Digital classes
App integration of exercise plans
06 Flexible space
Designed space to maximise flexibility of
and on-line classes function and layout

03 Gym amenities
Changing and showering facilities
07 Inclusive & relevant
Innovation and diverse formats to remain
to match gym profile relevant to all members

04 Operating model
Flexing our resource model and
deploying self serve

Capital Markets Day 2022 27

We optimise space and product… 03 Flexible model &
product formats

Small Medium Large

Individual, unisex Reduced size male and Standard configuration
shower/WC cubicles female changing, WC of changing, WC
& wash rooms & wash rooms

Inclusion of admin & Majority of lockers Majority of lockers

BOH areas within installed outside the installed within the
changing block changing rooms changing rooms

Gym size Gym ancillary (sq.ft & %) Gym (sq.ft & %) TOTAL (sq.ft)
Small 660 9% 6,840 91% 7,500
Medium 1,600 13% 10,900 87% 12,500
Large 2,720 18% 12,280 82% 15,000

Capital Markets Day 2022 28

…delivering growth across a range of sizes 03 Flexible model &
product formats

York Sydenham Paignton

City Residential Greater London Town
Retail Park High Street Retail Park
Opened April 2021 Opened May 2021 Opened September 2021
Size: 15,250 sq.ft Size: 12,750 sq.ft Size: 10,250 sq.ft

Capital Markets Day 2022 29

Our formats give us
headroom for growth… 03 Flexible model &
product formats

TGG growth by segment 2022 2021 Year-end Accelerating growth

Growth 2022
28 new sites to be opened in 2022, including
City Residential 106 16
three gyms purchased from Fitness First
Greater London 64 7 10-20,000ft2
Low cost market share expected to
City Centre 16 0 increase further

Town 15 5 8-12,000ft2 Town locations increasing by 33%

Small Town1 1 5-8,000ft2 High performing City Residential and Greater
London residential locations continue growing
due to favourable property market
TGG estimated share of
low cost market 2021
TGG growth UK low cost Maintaining strong position in London
2022 headroom
residential market from organic growth and
26.7% +28 650 strategic acquisition
(24.9% PY) (sites) (to 2026)
Pipeline for 2023 building successfully
1) Town catchment 25-55,000 adults within 10 min drive time

Capital Markets Day 2022 30

…and deliver proven returns 03 Flexible model &
product formats

Smaller sites still delivering high returns

• The average size of a new gym through organic growth • Proven format and operating model across all sizes to
has been gradually reducing over several years as we deliver consistent ROIC
have entered smaller catchments • Continuing to evolve and develop model for operating in
• In 2021 the average new gym was c.12,000ft, ranging even smaller catchments
from 21,000ft2 in Leeds to 7,000ft2 in Dorchester

Rolling average size Annual average new site size sq.ft 2019 ROIC in mature sites

20,000 18,000
35%
18,000 16,000
16,000 30%
14,000
14,000 25%
12,000
12,000
10,000 20%
10,000
8,000
8,000 15%
6,000
6,000
10%
4,000 4,000
5%
2,000 2,000

0 0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2008 to 2013 2014 to 2017

Excl. Lifestyle and EasyGyms

Capital Markets Day 2022 31

Continued innovation enabling faster growth…

Remote Small Town Digital Diet and

operation. format. fitness. nutrition.

Capital Markets Day 2022 32

Next generation
technology
Jasper McIntosh,
Chief Information Officer
Technology is a critical enabler
and key differentiator

Activity in Q1 2022
Ecommerce >14m >19m >6.5m
gym visits app sessions web sessions

Data App

Technology @
Technology drives every area:
The Gym Group
• Online joining
• Gym entry
• Operational efficiency
Internal
systems In gym • Digital content
• Decision support

Capital Markets Day 2022 34

Scale enables us to invest in initiatives beyond the
reach of almost all other UK operators

£14m capex Delivered Opportunity

invested evenly across 2019 - 2021 2019 - 2021 2022+
Gym visits Lower CPA
c.104m 10% reduction
= c.£1m saving
Website and App Proprietary App sessions
upgrades software c.59m Improved
conversion
Web sessions 50bps increase
Pricing & Behavioural Digital & Data c.80m = c.£8m revenue
models infrastructure
Extended tenure
Digital Cyber & Data 14 extra days
content security = c.£6m revenue

Capital Markets Day 2022 35

Our strategy uses technology to drive KPI across acquisition,
experience and efficiency

Acquisition Experience Efficiency

Ecommerce App Productivity
Pricing In-gym Automation

KPI impact KPI impact KPI impact

Web traffic, Visits, member satisfaction, Rejoin,
conversion & yield churn cost

Data & insight as a key enabler

Capital Markets Day 2022 36

We are active right across the user journey and
see further opportunity in many areas

Acquisition In gym Leave & win-back

* Online content Activity tracking Churn prediction
* Optimised joining Free wifi Re-join marketing
* Advanced pricing * Workout programmes * Targeted eCRM
* Remote site management

Consideration Activation At home

Targeted marketing Automated access Digital classes
Multi-channel integration Billing Fiit App
* Advanced product * Digital “welcome” experience Online member management
& proposition * Behaviour modelling * Instructional content
* Wearable devices

* Area of further opportunity

Capital Markets Day 2022 37

A new ecommerce platform build
for acquisition and growth

A platform for acquisition

• Mobile first
• Search optimised
• “Welcome” experience
• Digital content

A platform for growth

• Latest technology
• New content tools
• Data & analytics
• Security

Capital Markets Day 2022 38

The platform launched in April drives
marketing, engagement & product

Driving marketing
• Increased search visibility
• Improved speed and stability
• Stronger merchandising
• Quicker online joining

Driving engagement
• Improved mobile experience
• More engaging content
• Improved testing tools
Improving website conversion
by 50bps could deliver
Driving product an additional £8m in
• Data driven product design annualised revenue
• Faster time to market * Based on Jan/Feb conversion data

Capital Markets Day 2022 39

Our app experience has been
significantly improved

Contactless Live gym

entry busyness

Classes & Digital

activities classes

Capital Markets Day 2022 40

Our app is market leading and delivers
very high user engagement

App usage has increased significantly: Our app ratings are now the best in the industry:

Monthly Active App Users as % of Apple App Store Google Play Store
Operator
Rating * Rating *
Closing Membership 2022 vs 2019
The Gym Group 4.7 4.6
70%
PureGym (UK) 4.8 4.1
60%
50% Virgin Active (UK) 4.7 2.8

40% Fitness First (UK) 4.1 2.7

30%
Planet Fitness (US) 3.8 3.8
20%
David Lloyd Clubs
10% 3.1 2.4
(UK)
0%
Basic-Fit (EU) 2.5 1.7
Jan Feb Mar

2019 2022 JD Gyms (UK) 1.6 1.9

* Ratings as at 15-05-22
Our app enriches the gym experience for our members
Capital Markets Day 2022 41
New data capabilities enable us to optimise price,
churn and operational efficiency

Pricing Churn Operations

Subscription, Churn propensity, Location,
promotion, demand analysis, feedback performance

KPI impact KPI impact KPI impact

Increase Increase member satisfaction, Reduce costs,
conversion & yield reduce churn increase ROIC

A market-leading analytics capability adds value to every area of the business

Capital Markets Day 2022 42
We’re investing into new technology
in several other areas

New Increasing Digital

Technology Automation Product

Access control Digitisation Out-of-gym exercise

Image recognition Reporting Connected fitness

Video help stations Data Performance measurement

KPI impact KPI impact KPI impact

Grow estate Grow estate Reduce churn
Reduce costs Reduce costs Increase satisfaction

Capital Markets Day 2022 43

We are set up for ongoing success
We have a strong team and a best in class platform.
We will continue to invest to realise the opportunity. An experienced senior
management team:

01 – Key differentiator CIO in role since 2014.

Rated in the
Our scale advantage is a key point of differentiation top 20 UK CIO’s in 2021

Ex-Head of Digital Product

02 – Market leading position & Customer Experience

Our capability in digital and data is market leading

Ex-Head of Analytics & Intelligence

03 – Further opportunity
We are building further competitive advantage Ex-EMEA Director of Architecture

Capital Markets Day 2022 44

Revenue
optimisation
Nick Shelmerdine,
Director of Strategy &
Corporate Development
Introduction

Our price product architecture today

Core memberships: Add-ons and additional

memberships:

LIVE IT Multi-Gym Access, Bring a

Friend, Fitness & Body Tracking,
(27% of members)1 Discounts & Offers Student Yanga Sports
Membership Water

+£5-7
On-Demand
1, 3, 5 Day
Unlimited 24/7 Gym Time, Free Fitness App -
DO IT Group Classes, 200 Free On- Passes
Fiit
Demand Workouts. Prices currently
(67% of members)1
range from £13.99 to £35.99

1) Membership figures as of Dec 2021

Capital Markets Day 2022 46

The next stage

Three significant opportunities

to drive this forward

Price point optimisation

01 Selectively increasing prices to maximise revenue

Three tier architecture

02 Introducing a third core membership and new
features to help us drive volume and yield

Commercial sophistication
03 Leveraging the benefits of scale and investments
to unlock new levels of optimisation

Capital Markets Day 2022 47

Price point optimisation

In Dec 2021, our competitors were materially more expensive…

Price Position vs Competitors, Dec 20211

£ per month

Average across all locations Average difference to The Gym Group in competing locations

£19.27 Average

£19.96

+£4.12 Average
£22.69

£23.21
18-26%
higher than
+£4.48
Other gym sectors

Mid-Market Premium Public Authority

£35-55 £55-150+ £30-50 +£4.06

1) Company analysis of average headline rates December 2021 (no contract option if available)

Capital Markets Day 2022 48

Price point optimisation

…and research showed an opportunity to narrow the gap

In members’ views, the value we deliver outweighs …and they see little difference between The Gym Group
the price we charge… and Pure Gym on the top 10 most important criteria

Value Map – The Gym Group Price vs Value Performance1 The Gym Group vs Pure Gym – Relative Rating on Top 10 Purchase Criteria1

Very High
expensive Weights Range & Quality Monthly Price

Cleanliness Proximity to Home

Cardio Range & Quality
No Contract
Perceived price

Gym Busy-ness

Importance
24 / 7 Access

Joining Fee
Staff & PT Service

Our position on the

chart indicates room
to adjust prices while
still delivering great
value for money
Very
cheap Low

Low Perceived value High Pure Gym Relative performance The Gym Group
(performance on non-price purchase criteria) Better Better

1) Consumer survey Nov 2021, Simon Kucher & Partners analysis

Capital Markets Day 2022 49

Price point optimisation

We are now accelerating price increases to optimise revenue

Average headline rate, Jan 2019 to Apr 20221 • Headline price increased across 178 sites in April
• But The Gym Group remains best value in competing
New
£21.00 £20.85 locations…
members
• …and well placed to benefit from customers trading
£20.50 down from mid-market / public authority
+8%
£20.00
• Rate increases unlock potential to reprice existing
£19.50 members who joined on lower rates
Existing • We are increasing the volume and level of repricing…
£19.27
£19.00 members
• …but keep this below the full headline rate to reward
£18.80 loyalty and discourage churn
£18.50
£18.43
£18.00

• Reduced price gap to competitors

£17.50
Key • Improved member experience in busy gyms
£17.00 implications • Trials have shown this creates additional revenue
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• This will take time to flow through the member base
2019 2020 2021 2022

1) Headline price includes VAT

Capital Markets Day 2022 50

Membership architecture

LIVE IT’s success has generated £24m in profit

LIVE IT penetration How LIVE IT has added value

% of total memberships (Illustrative)

30%

25%

20%

Volume
Adding the ‘LIVE IT’
15% Total DO IT premium membership has
enabled us to capture value
£24.2m LIVE IT
from members willing to pay
10% profit Jan 18 - more for extra benefits
Mar 22 Value
addressed by
DO IT Value
5% added by
LIVE IT

0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Price
2018 2019 2020 2021

Capital Markets Day 2022 51

Membership architecture

Now we can make another step-change

Current structure
(Illustrative)

The opportunity
Customers not
yet reached
Volume
(priced out)
A lower priced membership package can attract
incremental volume (net of cannibalisation) from
Volume

non-gym goers unwilling to pay for DO IT today

DO IT

LIVE IT
Yield
Willingness to ‘pay
more’ not realised There is potential to capture more willingness to
Value
addressed pay with an enhanced premium package
by DO IT Value
added by
LIVE IT

Price

Capital Markets Day 2022 52

Membership architecture

Adding a third core membership brings

transformative benefits
New structure
(Illustrative - relative price points not exact)
Key benefits
• Potential to drive both incremental volume and yield
• Enables us to close the headline rate gap to competitors with
fewer downsides
Incremental
volume • Lower entry prices to drive awareness and consideration
unlocked • More flexible structure for commercial strategies and local
market needs
Volume

New Entry Membership • Better monetisation of new membership benefits and features
DO IT
New Core Package
LIVE IT
Timing
New Premium Membership • Opportunity unlocked by new tech platform
• Expecting to begin trials before the end of the year
• Phased introduction of new features and benefits
Incremental
yield unlocked • Value delivered will build over time

Price

Capital Markets Day 2022 53

Commercial Sophistication

And we will unlock new levels of sophistication

Investments in technology, data & analytics and brand enable us to unlock
new ways to optimise our commercial strategy

More sophisticated
Site-level tailoring strategies for Stronger ‘test &
across more new site pricing, member learn’ capability
elements repricing, tactical (volume, pace and
promotions and agility of trials)
retention / re-activation

Behavioural Improving
Data science
economics price and
and modelling
to improve the way we value awareness
to drive faster and
communicate and nudge to attract new and
better decision making
member decisions existing gym goers

Capital Markets Day 2022 54

Q&A
Break
Brand
Emily Kortlang,
Group Brand & Marketing Director
Why is brand & branding
important to The Gym Group?
Strong brands deliver a competitive advantage

01 02 03
Brands are People pay more Reduce
remembered for brands the cost to acquire
Increase consideration Reduced price sensitivity Increase conversion, lowering CPA

Increased Increased Higher Improved

awareness traffic conversion acquisition

Capital Markets Day 2022 59

To stay strong, brands need
to evolve…So do we! 2014 2015 2022

Brands need to update their identity and meaning to… 1971 1987 1992 Current

Attract new Develop

Remain
audiences & retain new revenue
competitive 1951 1954 1967 2019
core customers streams

1987 - 1998 1998 - 2003 2003 - 2004

Therefore:

…gaining more customers

and market share 2004 - 2007 2007 - 2015 2015 - now

Capital Markets Day 2022 60

What is our challenge
in this area?
We’re a great business but the brand isn’t strong enough

product. price. place.

people. purpose. planet.

Capital Markets Day 2022 62

‘The Gym’ is generic…

• When we spend to advertise ‘The Gym’, we advertise

the gym and grow the category and our competitors

• When consumers search for ‘The Gym’ there is

considerable leakage to our competitors (who use the
term within their website to improve their SEO ranking)

• ‘The Gym’ lacks distinctiveness and isn’t memorable

which harms our brand awareness

• Consumers can’t buy a brand they aren’t aware of

(or can’t remember)

Capital Markets Day 2022 63

Capital Markets Day 2022 64
‘The Gym’ costs us money

The Gym Best in

Category
• Brand awareness of ‘The Gym’, is low
Top of Mind
Q: What gyms
are you aware of?
7% 28% for a business of our size and scale

• Awareness is the first phase in the

marketing funnel, and without this,
consumers are unable to consider
Awareness and therefore purchase your product
Q: Are you aware
of The Gym?
16% 54% • We need a name, that our consumers
can remember and we can give meaning
to, to build an emotional connection with
Source: YouGov, Feb 2022

Capital Markets Day 2022 65

How can we address
this challenge?
A strong brand needs a strong identity
& an emotional connection

Name Identity Essence

Memorable, with significant Distinctive & Meaning & an
SEO benefits memorable brand assets emotional connection

Capital Markets Day 2022 67

We’re changing our name, Name
logo and our visual identity

Capital Markets Day 2022 68

Moving to The Gym Group has significant Name
commercial upsides
Generic
high competition, The Gym
The Gym X Gym
THE CATEGORY GYM
high cost & weak Group
defensibility

Domain Equity
BROAD CATEGORY
THE GYM
CPA
BLENDED
UNIQUE / CATEGORY
THE
THEGYM
GYMGROUP
GROUP Marketing
Investment
BROAD UNIQUE NAME
FITNESS FIRST
Unique Memorability
low competition,
lower cost &
Consumer
HYPER UNIQUE NAME HUSSLE stronger
Research
-
defensibility

Moving to The Gym Group allows us to retain play in the category, the broad category but also unlock
more brand defensibility by being more unique which is critical as we harvest more brand demand
Capital Markets Day 2022 69
We’re creating a new digital first, visual identity system Identity

• Created for the digital consumer

journey with AA accessibility rating

• Delivery of a digital first toolkit for

digital-centric experiences

• Future proof for expansion of digital

experiences & touchpoints needed for
a Gen-Z audience

A new visual identity, anchored in cyan with a logo wordmark,

modern colour pallete & custom made font
Capital Markets Day 2022 71
‘The Gym Group’ enables us to create powerful Essence
connections with key audiences

Groups bring psychological safety and create a

01 sense of community & belonging

The gym-intimidated are looking for gyms

02 to be friendly, approachable and inclusive

Groups are powerful motivators, groups get behind

03 their members and individuals in groups achieve more

This meaning of the group allows our brand to

04 resonate with more people, growing our audience

Capital Markets Day 2022 72

Our new brand and branding

Name Identity Essence

Capital Markets Day 2022 73

The new brand and branding will launch this year

July August September

Signage Web & App Marketing Campaign
Signage across our 204 sites The website and app updated With bought and
updated to The Gym Group to new visual identity and earned media
switched over in August

Capital Markets Day 2022 74

We have a new team that can deliver and realise the value

Marketing Team

Emily Kortlang Seanpaul Walsh Matt Puddephatt

Cassie Melrose Amy Binns Greg Mills

Capital Markets Day 2022 75

‘The Gym Group’ will create
new value for the business

High brand
Our new brand delivers:
health
metrics

01 More awareness
Brand High
investment Awareness

02 More consideration

Reduced
Reduced
03 More members
need for
price
Performance
sensitivity
media
04 Outstanding financial
Decreased
CPA performance

Capital Markets Day 2022 76

Financial outlook
and capital
allocation
Mark George,
Chief Financial Officer
Financial outlook
and capital allocation

01 Medium term outlook

02 Capital allocation principles

1) “EBITDA” here refers to EBITDA less Normalised Rent

Proven financial model:
strong returns and self-funding growth
High-growth business that delivers consistently Economic model driven by gyms delivering
strong financial returns 30% ROIC2 at maturity (from year 3 onwards)

2019 P&L £million Target mature site economics by gym size £000
Revenue 153.1 16,000 sqft 12,000 sqft 8,000 sqft
Cost of sale (1.4) In 2019 the Revenue 1,100 900 630
Gross Profit 151.7 business opened Cost of sale 11 9 6
Fixed costs including rent (40.6)
Controllable Costs (49.7) Site EBITDA 20 Gross Profit 1,089 891 624
margin includes Fixed Costs including rent 300 250 170
Site EBITDA1 less rent 61.4 mix of mature & new sites Controllable Costs 355 280 200
Site EBITDA1 margin % 40.1% immature sites
(12% growth) Site EBITDA1 less rent 434 361 254
Central costs (12.9) Central costs at funded entirely Site EBITDA1 margin % 40% 40% 40%
Group EBITDA1 less rent 48.5 8.4% of revenue
from operating Initial capital invested 1,425 1,200 850
Group EBITDA1 margin % 31.7%
cash flow Target ROIC2 30% 30% 30%
2019 ROIC for mature sites
Average Site
ROIC
EBITDA1 £’000
Sites open between 2008 and 2013 457 30%
Sites open between 2014 and 2017 426 31%
Total 437 31%

1) “EBITDA” here refers to EBITDA less Normalised Rent

2) Mature Site Return On Invested Capital (ROIC) calculated as mature site EBITDA less normalised rent divided by initial capital invested to build the site

Capital Markets Day 2022 79

2025 targets: 300+ sites and c.£100m EBITDA1

Building blocks to target EBITDA1

• Recover to pre-Covid levels of profitability per site: • Delivers £40-50m PBT2
• 28 new sites in 2022 and 25-30 sites per year 2023, 2024 & 2025 • Latent profitability from 2024 and 2025 sites still to mature
• Average size & EBITDA1 of gyms decreases over time • Targets represent a staging post - further growth to come
• 30% mature gym ROIC regardless of size

EBITDA1 2017-2021 Building blocks to 2025 EBITDA1

c.£100m1

39.1 48.5
30.6
5.7
(10.2)

2017 2018 2019 2020 2021 Pre-covid Pre-covid 2020 & 2021 New sites Increase in 2025
estate at estate full sites at 2022-2025 central costs EBITDA
2019 level maturity maturity
1) “EBITDA” here refers to EBITDA less Normalised Rent. “c.£100m” target based on £95-105m range
2) Adjusted Profit Before Tax

Capital Markets Day 2022 80

Our plan to 2025

2025 targets Financial drivers

300+ Revenue Recovery

sites of existing estate

£95-105m 25-30
EBITDA new sites per year

£40-50m
PBT

Capital Markets Day 2022 81

Recovery well underway with more to come

Outperformed Top 10 European Revenue recovery above industry LFL revenue expected to be at
operators in membership recovery average across UK and rest of Europe pre-COVID levels by end of 2022

Membership change 2021 Industry Revenue LFL Revenue by Month

2020-21(%)1 % of 2019 Levels2 (2022 as a % of 2019)3

The Gym Group +24%

70% 89
David Lloyd +17%
69
60% 88 88
Greenwich Leisure +17% 64
59 87
Fitness Park +15% 50%

PureGym +13% 40%

Basic-Fit +11%
30%
SATS Group +7%
20%
FitX -5%
10%
RSG Group -9%

Friskis&Svettis -10% 0%
Europe UK The Gym Group 1
Jan 2
Feb 3
Mar 4
Apr
1) Top 10 closing membership #s – ranked by % chg. (2021), Deloitte EHFMR 2022
2) 2021 revenue as a % of 2019 levels, Deloitte EHFMR 2022
3) Comparison of monthly revenue in 2022 with equivalent month in 2019 for sites open as at 31 Dec 2018. Excludes revenue from new Fitness Trainer model that was earned in 2022 but not in 2019

Capital Markets Day 2022 82

Factors influencing the shape of recovery

Infection Shift in working Alternative Cost of living

concerns? patterns? fitness options? squeeze?

Short Fear from catching Work-from-home Expansion of digital and Consumers thinking
term covid still a factor but affecting gyms, outdoor fitness options carefully about any new
down from peak particularly city centres during lockdowns discretionary spend

Medium/ Covid has Gyms in residential Most people not Low cost gyms will
Long term increased the areas offering satisfied with attract trading down
benefits public’s focus on multi-site access will alternatives; from mid-market and
health & fitness have advantage likely to complement premium
gym usage

In the short term some of these factors are affecting the speed of recovery;
in the medium-to-long term they will benefit our business
Capital Markets Day 2022 83
Speed of recovery varies across estate

Disruption of normal routines, particularly working from home, is affecting the speed of return to gyms

Regions with highest prevalence of WFH Office-focused city centre gyms slowest Gyms with parking recovering faster
clearly more impacted to recover so far than those reliant on public transport

Apr 22 LFL revenue vs 2019 by region1 Apr 22 LFL revenue vs 2019 by gym type1 Apr 22 LFL revenue vs 2019 by parking2

100% = Apr 2019 100% = Apr 2019 100% = Apr 2019

99% 100%
96%
89% 89% 88% 89% 89% 88%
83% 82% 84%

London South North Total City Centre London Small Town City Total London Residential - London Residential - London Residential -
Residential Surburban No Parking Parking Total
1) For the 155 sites open up to 31st Dec 2018
2) London Residential sites only (No parking – 31 sites, Parking – 18 sites)

Capital Markets Day 2022 84

Tactical and strategic actions to support recovery and growth

Marketing & promotions Improving the Strategic initiatives

Measured and targeted marketing and member experience Major projects going live in 2022 that will
promotions to attract re-joiners and new In the gym and in the app – taking a great support membership recovery and drive
joiners when they’re ready member offer and making it even better long-term value

Fiit classes in Improved class Brand transformation New technology platform

app launched timetable

INVEST WHERE WE
CAN DELIVER
RETURN ON CAPITAL
OF 30%+
Focus on
member service
Yield optimisation

Capital Markets Day 2022 85

New sites performing well

Membership vs mature target by month of opening

Sites opened since 110%
the end of lockdowns 100%
performing in line 90%

with historical norms, 80%

indicating they 70%

60%
will deliver 50%

30% ROIC 40%

30%

once mature 20%

10%
0%
(4) (3) (2) (1) 0 1 2 3 4 5 6 7 8 9 10 11 12
Months (prior to) / post gym opening

Organic Mature Estate Average 2021 Openings

Capital Markets Day 2022 86

Financial outlook
and capital allocation

01 Medium term outlook

02 Capital allocation principles

1) “EBITDA” here refers to EBITDA less Normalised Rent

Capital allocation principles

Re-investment Growth capex Leverage and cash

Ongoing investment in physical Investing in high-returning Sensible leverage with excess
and digital product to maintain growth opportunities cash returned to shareholders
outstanding member experience

Maintenance capex @ Invest where we can deliver Target leverage

6% 1.5X – 2.0X
return on capital2 of

of revenue 30%+ (net debt3 / EBITDA1)

Tech capex @ Medium term expectation Excess cash

3% returned
(not a cap) of

of revenue 25-30 to shareholders

new sites per year

1) “EBITDA” here refers to EBITDA less Normalised Rent

2) Mature Site Return On Invested Capital (ROIC) calculated as mature site EBITDA less normalised rent divided by initial capital invested to build the site
3) “Net Debt” here refers to Non-Property Net Debt (i.e. excludes IFRS16 lease indebtedness)

Capital Markets Day 2022 88

Delivering strong growth and free cash flow

Net Debt2 £
In 2022, Net debt2 level to
with EBITDA1
per site maintain leverage
at 1.5x EBITDA
recovering to pre-covid levels
and with significant growth
capex, net cash flow will be
negative Excess cash

In 2023,
the business starts to generate Net debt2 level if no cash
net cash flow, which grows in returned to shareholders

subsequent years, reducing

Dec-21 Dec 22 Dec 23 Dec 24 Dec 25
net debt rapidly

Leverage will drop below 1.5x EBITDA in the next 12 months, presenting
an opportunity for potential cash returns to shareholders in 2023
1) “EBITDA” here refers to EBITDA less Normalised Rent
2) “Net debt” here refers to Non-Property Net Debt, which excludes the IFRS16 liabilities associated with property leases

Capital Markets Day 2022 89

Closing remarks
Richard Darwin,
Chief Executive Officer
A clear plan to achieve c. £100m EBITDA1 in 2025

Complete Underway Planned

Membership recovery

Site pipeline 25-30 p.a.

Flexible formats

Technology platform

Pricing changes

Three price product architecture

Brand transformation
1) “EBITDA” here refers to EBITDA less Normalised Rent. “c.£100m” target based on £95-105m range

Capital Markets Day 2022 91

Summary

01 02 03
Resilient business Maximise site growth Immediate
well-positioned in low potential from market opportunity
cost gym market and opportunity around yield
recovering well

04 05 06
Brand and tech Route to Capital allocation
are key enablers to £40-50m PBT principles clearly
running a successful and £95-105m defined with excess
low cost business EBITDA in 2025 cash returned to
shareholders

Capital Markets Day 2022 92

Q&A
Capital
Markets Day
Thank you