Fitspiration+Create, Innovate, Cooperate Fitness Markt Europa,

Quo Vadis?

Herman Rutgers, Fitspiration Utrecht - 21/1/2016

David Patchell Evans ( “Patch” 58)

Start als student met 1 club in 1979

Goodlife Canada-350 clubs / 1,2 Miljoen Leden

$ 500 Miljoen omzet

Elke dag 2 vragen

Wat heb ik vandaag geleerd ?

Wat ga ik morgen beter doen ?

4

Europa is s’werelds grootste Fitness Markt ( 2014 - $ BN)

Europe 35 (42%)

USA & Canada 27 (32%)

Asia-Pacific 14 (18%)

Latin America 6

Africa & M East 2

Total $ 84.000.000.000 ( + 4% )

Sources; IHRSA Global report 2015 / EuropeActive Data 2015

The European Health & Fitness Market

Report 2015

50.1 million members

billion euro revenues 26.8

48,000 facilities

400,000 employees

European Fitness Market

in 2014

Fitness in Europa; € 26.8 Miljard in 2014

8

Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database

Top 10 landen ; Market size (€m), Share of total market (%)

19%

18%

11%

9% 8%

5% 5% 4% 3%

3%

15%

5.061

4.700

3.121

2.368

2.134

1.300 1.248 1.098

860 702

4.234

0

1.000

2.000

3.000

4.000

5.000

6.000

UK Germany Italy France Spain Russia Netherlands Turkey Poland Sweden 18 others

To

tal R

ev

en

ues (

€m

)

65% of total European market

0 100 200 300 400 500 600 0 200 400 600 800 1.000 1.200 1.400

McFIT grootste keten qua ledental (c1.3m),

High-end operator Virgin Active is omzet leider

9

McFIT1

HealthCity/Basic-Fit

Virgin Active1

Health & Fitness Nordic

David Lloyd Leisure

Fitness World2

Fitness First

Pure Gym

SportCity/Fit For Free

clever fit

The Gym Group2

Alex Fitness1

Kieser Training

DW Sports1

INJOY

L’Orange Bleue

Nuffield Health3

Curves International

Mrs.Sporty

Holmes Place1

Low-cost (less than €30)

Medium (€30 to €60)

High-end (more than €60)

Segments based on monthly

revenues per member:

Total membership (left graph), Total revenues (right graph), Market segment (colour)

Notes: 1) Estimates based on professional judgement; 2) Estimates based on public company information; 3) Corporate clubs not included in 2014

Sources: Company information, Deloitte analysis

NL markt in Europese context

Goed + Beweegcultuur( Eurobarometer) spreiding over

leeftijdsgroepen

+ Participatie fitness (nr 1 NO met 19,6%- SE 2e met 16,6 % Nr 3 is NL met 16,0% )

+ Branche vereniging

+ Corporate wellness

+ Laag BTW %

+ Connectie > Gezondheidszorg

+ 2 van toptien EU operators zijn NL

( Healthcity/Basic Fit en Sportcity/F4F)

+ Virtuagym in digital

+ HQ /DC Life Fitness, Octane, Curves, Holmes Place

Kan beter !

- Promoten van Benefits

- Waarde creatie (weinig non-dues)

- Omarmen van “wearables”

- Gebruik van “digital”

- Steun voor branche organisatie

- Markt onderzoek

- Sector Promotie

- Diversiteit

- Selectie, opleiding en waardering van

personeel

8 Trends voor de komende jaren

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

# 1

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ Social

Demographie; 1 pers. huishoudens

Vergrijzing

Verhoging AOW leeftijd naar 70

Verzekeraars; eigen verantwoordelijkheid patient

Werkgeversbelang fitte/gezonde medewerkers

Gezondheids politiek overheid – preventie

Vrije tijd

Hedonisme

Individualisme

Magere economische groei

Macro-economisch / Sociaal Veel ontwikkelingen gunstig voor de fitness sector

Source: EuropeActive, Deloitte

# 2

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

42 transacties tussen 2011 and 2014

Fitness is weer “sexy” in ogen van investeerders

© 2016 15

18

9

8

7

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014

Number of M&A deals

Source: EuropeActive, Deloitte

Beursgang weer “in” – Fitness is “Big Business”

Fusies & Overname Activiteit in 2015/16 - Clubs

• Virgin Active bought by Brait – South Africa (€1.8bn)

• 1Rebel starts through crowdfunding – UK (1 club, £1.5m)

• FSN Capital buys Fitness World – DK ( > €100m)

• Pure Gym acquired LA fitness – UK (€60 - 80m)

• Cofino buys Aspria leaseholds – DE (€54m)

• Basefit acquired FITmade – CH

• NorthEdge Capital backs Total Fitness with £11.5m – UK

• Fitbit listing at NYSE ($3.0bn)

• Planet Fitness IPO in August ($1.58bn)

• Soulcycle plans IPO; Announcement in July

• Barry’s Bootcamp acquired by North Castle Partners – USA

• Adidas buys Runtastic – AT/DE (€220m)

• IPO The Gym Group on London Stock Exchange 9/11 – UK (Value £250m )

• DW Fitness acquired 7 clubs of Pure Gym (Former LA Fitness clubs)

• 1Rebel second tranche crowdfunding – £1.5m (Funding target) Currently £3.0m (200%, Overfunding). James Jack

(Pure Gym Co-Founder) invested £300k, single largest investor.

• L’appart Fitness France raises €4.5 million (25/11)

• Bridge Ventures with investment in Spanish discount operator Viva Gym

• MIGROS koopt alle aandelen van INJOY ( Jan. 2016)

• Pure Gym ( 650.000 leden ) kondigt aan naar de beurs te willen - FT 18/1/2016 ( 500 M Pounds)

© 2016 16

Note: Outside Europe

Source: Merger Market, financial press, EuropeActive, Deloitte

Fusies & Overnames ook bij leveranciers

Life Fitness > SCI-Fit (2015)

Precor > Queenax (2015)

Nautilus > Octane Fitness ( Jan. 2016)

© 2016 17

• Health and Fitness Nordic (HFN)

consolidatie in Scandinavië

(SATS, Elixia, Fresh Fitness,

Metropolis) 200 clubs.

• Pure Gym koopt LA Fitness met 43

clubs in UK.

• McFit koopt Happy Fit in Italie

• En; CROWD FUNDING wordt

populair

Consolidatie

18 © 2016

Source: EuropeActive, Deloitte

20

# 3

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

• Duitsland; 32% marktaandeel

• LSE Beursgang van The Gym Group

(£ 250 miljoen)

• Pure Gym koopt LA Fitness

• McFIT > High5 (9,95) als franchise

• McFIT gaat stand-alone

Cyber Training club in Berlin centrum

openen.

• FitX snelste groeier in Duitsland

• Eerste women only budget club;

Discount Snelst groeiend markt segment

22 © 2016

Source: FitX, EuropeActive, Deloitte

# 4

What’s driving the European fitness market?

© 2016 25

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

• Boutique concepts zijn “hot”. En

genereren relatief hoge prijzen….

• In USA Boutique markt reeds 21%

marktaandeel in waarde

• ReLevel - eerste club in Mar-15.

Yoga focused concept. 1 class €15 of

12 classes voor €150. Concept

ontwikkeld door Fitness First.

• Electro Muscle Stimulation (EMS)

groot sukses in Duitsland (b.v. 200

clubs “Bodystreet” – totaal 800).

• SoulCycle / Boomcycle / Psycle, etc.

• 1Rebel unieke crowdfunding

campaigns (£ 3 MM)

Boutique studios Customer group focused concepts

26 ©

Source: ReLevel, EuropeActive, Deloitte

# 5

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

Digital Disruption Is Here To Stay !

Worlds largest taxi company owns no cars

(Uber)

Largest accommodation provider owns no real estate

( Airbnb)

Largest phone companies own no telco infra

(Skype)

Worlds most valuable retailer has no inventory

(Alibaba)

Worlds largest movie house owns no cinemas

( Netflix)

• FREELETICS

• Opende innovation office in

Berlijn

• Gym training plan

• Focus op internationalisatie.

• private label kleding collectie.

• Runtastic lanceerde ‘Results‘

• Nike+Training Club in UK en USA

• Fitness First investeerde in

‘customfit‘ app

• Wat is de impact voor de traditionele

fitness sector?

Fitness-Apps Focus op outdoor fitness enthusiasts

30 © EuropeActive – Herman Rutgers

Source: Freeletics, EuropeActive, Deloitte

• Under Armour kocht MyFitnessPal

voor $475M en Endomondo voor

$85M in Febr. 2015.

• Is nu s’werelds grootstse digital

“health and fitness community”.

• Meer dan 120 miljoen gebruikers.

Under Armour Sportkleding > Digital fitness

32 ©

Anderen

Adidas kocht Runtastic

Fitness First > NewMoove

Source: UnderArmour, Adidas, Fitness First, EuropeActive, Deloitte

# 6

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

# 7

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

• CrossFit populair in UK, Spain, Italy

en Duitsland. Sinds 2010 meer dan

1,000 locaties geopend in Europa.

• Traditionele gyms integreren

functional fitness zones.

• Original Bootcamp; succes in

Duitsland, 31 clubs, €11 per sessie.

• Mrs.Sporty lanceert women focused

functional fitness program

(Pixformance ).

• Obstacle races en outdoor runs

profiteren van de functional fitness

trend (e.g. StrongmanRun / Tough

Mudder / Maldon Mud Run).

• “Portable Gym”; DISQ

Functional Fitness ‘Functional’ is premium priced

38 © 2016

Source: Reebok, EuropeActive, Deloitte

# 8

What’s driving the European fitness market?

Digital

“Pay-as-

you-go”

Outsiders

Functional

fitness

M&A /

financing

trends

Boutique

studios

Discount fitness

Macro-

economic

/ social

Veranderingen in fitness worden steeds meer gedreven door “externe” partijen

Overview of key market trends and drivers

© 2016 40

• Sports equipment :

– Nike

– Adidas

– Under Armour

• Tech-Firms:

– Apple

– Microsoft

– Tom Tom

• Media / Retail / Other:

– ProSiebenSat.1

– SPORTSDIRECT

– Schmidtgruppe

• Clubs:

– Low cost

– Premium

– Boutique / Microgyms

• Equipment:

– Cloud

– Biometric

– Automated

• Digital:

– ClassPass / “somuchmore”

– LesMillsVirtual, Wexer

– MyFitnessPal / Endomondo

– Freeletics / Runtastic

Industry “Insiders”

Fitness

Industry

Industry “Outsiders”

Source: EuropeActive, Deloitte

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