David Beattie

Group Brand & Marketing Director

Market update

Our sectors performance this year.

•The 2012 State of the UK Fitness Industry report concludes “Better than expected overall

performance”;

• Market value – has grown by 1.4% to £3.86 billion

• Membership levels – Perhaps the strongest growth indicator, are up 3.4% to 7.6 million

• Growing the consumer base – 12.1 per cent of the UK population are now registered as

members of a health and fitness club or publicly-owned fitness facility contrasting with 11.9%

in 2011.

•£600m debt mountain.

•Entered into a major financial restructure (Company Voluntary Arrangement, CVA).

•Buyers being sought for as many as 71 of its 150 clubs in the UK, leaving a potential

UK estate of 79 clubs.

•Klick low-cost project presently on hold.

•Andy Cosslett, CEO, said: “This will see us emerge as a company that is largely debt

free and with the necessary financial firepower to develop.”

• 32 Gyms at present.

• 70 sites by the end of 2013.

• £37m expansion, with each club

requiring an investment of £800K -£1m.

• Pure Gym targeting former JJB Sports

landlords.

• 23 sites currently in operation. 18 sites

in development.

• Turnover increased from £7.2m to

£13.5m in past 12-months.

• Group now has over 100,000 members.

• Back on the move finally.

• Opening in Cardiff & Birmingham.

• Rumours about Fitness First sites.

• Opens first High Street ‘club’.

• Located in Putney, South London.

• These new ‘studios’ will offer a range of

classes, personal training and

physiotherapy.

• Over the last five years the FIA’s representation has steadily broadened beyond the

traditional “fitness” landscape.

• The organisation will represent a broader range of members in health and

wellbeing.

FIA Rebrand

The Americans are coming! Again!

The Americans are coming! Pt. II

• 24 hour gym access.

• 1500 gyms across US.

• 2 gyms launched in the UK.

• £24.99 avg. price point in UK.

Snap video

http://www.youtube.com/user/SnapFitness247?feature=CAwQwRs%3D

2.17 min

The Americans are coming!

• 24 hour gym access.

• Access to 1800+ clubs around the globe.

• 6 gyms launched in the UK so far.

• £30.99 avg. price point.

Anytime videohttp://www.youtube.com/watch?v=rjl11ikl28A

2.36min

The Americans are coming!

• Their first premium club opens in Kensington, London later this year.

• A luxury fitness company charging min £175pm.

• Over 50 clubs in US and Canada so far.

In the States!

• Planet Fitness reached their 500th club

• $15/month. The average membership in the US is $49/month

• Focuses on the needs of occasional or first-time health club members

Planet Fitness video

31 sec

http://www.youtube.com/watch?v=h7o1tc7xDBU

A new trend in the States!

• Group interval fitness that’s “sweeping the nation”.• Session packages $180 (£112)for 10 classes.• Additional sessions extra – $99 for 8 sessions per month.• Is this a trend that could work in the UK?

Orange theory videohttp://www.youtube.com/watch?v=NOmw64GBuYQ From start to 1.35 please

In Oz!

• No contracts. Open 24/7.

• Over 100,000 members. 100+ locations.

• Weekly membership $11.95 based on recurring fortnightly direct debit.

• Converted that would be £31 a month with a "Club Access Fee“ of £95.

Jetts Fitness video

15sec

http://www.youtube.com/watch?v=2R-67iy8SmA

In Europe!

• No contracts. Low fees. Open 24/7.

• Over 1,000,000 members. 140+ locations

• €16.90 per month (€18.90 in Austria and Spain)

In Europe!

• Mrs.Sporty was founded in 2005.

• Co-founder is the former tennis player Steffi Graf.

• 300 clubs with over 80,000 members in Germany, Austria, Switzerland and

Italy.

Mrs Sporty video

42sec

http://www.youtube.com/watch?v=Wl1uKVnu4MQ&feature=related

Summary

• Members of the public are still prioritising their health during these difficult economic times.

• The UK and global fitness industry is growing and buzzing with new innovation.

• The arrival of the US competitors and new home grown start-up competitors

further demonstrates confidence in our sector.

• As the Market leader in UK fitness franchising, we will be copied and challenged.

• It will be more important than ever for your club to stand out in your market, be that targeting women, children, the deconditioned or the budget conscious!

Thanks and well done!

• Number of énergie Clubs taking part = 94

• Number of events in the UK = 150 (est)

• Twitter reach = 1.2 million people

• Tweets from BBC News, Dame Kelly Holmes; Reebok; Change4Life

• Amount of press coverage exposure = £120K (tbc)

• Amount raised for Teenage Cancer Trust = ???

And finally…

Fit4less video

46sec

http://www.youtube.com/watch?v=W4AoQ73-zkM