BASIC-FIT SPEAKERS: René Moos, CEO & Hans van der Aar, CFO 9 March 2021
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BAS I C - F I T
RES ULT S 2 0 2 0
FULL Y E A R
SPEAKERS: René Moos, CEO &
Hans van der Aar, CFO
PLAATS HIER DE
DATE: 9 March 2021
HIGHLIGHTS
COVID-19 dominated 2020 and was all determining factor for Basic-Fit
Clubs Members Revenue Underlying EBITDA
905 2.00 million €377 million €94 million
Up 15% Down 10% Down 27% Down 38%
year on year year on year year on year year on year
2
OUR CLUBS WERE CLOSED 41% OF THE TIME IN 2020
Closed between 4 and 7 months and open with restrictions
Restrictions, timing and duration of measures differ per country
Spain hit hard by COVID-19, but stayed open during 2nd wave
Netherlands, from last one to reopen to last one to close
France had the longest period of closures
41% of the time our clubs were closed due to government measures
3
SWIFT ACTION TO KEEP THE
BUSINESS HEALTHY
Focus on retention and engagement of our members and
employees
• Clear communication
• 2 periods of membership freeze and compensation
• Promotion of Basic-Fit App to work out at home
Focus on cash flow and liquidity
• Strict costs control
• Lower capex spend
• €100 million additional bank financing and €133 million
equity raise
Review of product & organisation
• Product optimisation: digital and club
• Organisational adjustments: structure and staff
4
121 NET CLUB OPENINGS
Record # of club openings in Jan & Feb and strong
opening programme after first COVID-19 wave
121 net new club openings; growing our network to
905 clubs
90 net clubs opened in France, 12 in the Netherlands,
10 in Belgium, 8 in Spain and 1 in Luxembourg
45 new clubs nearly finished and ready to open in 2021
when government measures are lifted
5
STRONG MEMBERSHIP GROWTH DURING OPEN PERIODS
Successful campaigns in Jan/Feb and summer
Joiners Basic-Fit clubs 2020 vs. 2019
Strong start of the year and catch up effect after first
1 2 3 4 waive (1 & 3)
Lockdown periods with leavers, but no joiners and
fewer joiners at the start of the second waive (2 & 4)
Cancellations during freeze period less than average
after initially somewhat higher rates ahead of the
Jan Feb Mrt Apr Mei Jun Jul Aug Sep Okt Nov Dec
freeze period
2019 2020
6
GROWTH STRATEGY REMAINS UNCHANGED
COVID-19 relating government measures result in:
• Weakened fitness industry; chains with limited access to capital are being hit
hardest
• More focus on health & well-being and expected increased fitness penetration
levels
• Ample availability of good sites at improved terms
Remain focused on organic growth, but we will look opportunistically at
increasing number of acquisition opportunities
Restart club construction when COVID-19 measures are lifted
Medium-term target of 1,250 clubs in 2022 will be reassessed in the coming
months once we have reopened our clubs
7
FINANCIAL REVIEW PLAATS HIER EEN
REVENUE
Significant impact from temporary club closures
We lost well over €200 million in revenue due to
COVID-19
Membership freeze and compensation
Negative impact on our membership base
75% of the members who indicated their
preferred way of compensation, opted for a
discount over a six-month period
*Amount based on Q4 19 run rate and clubs being closed for 41% of the time on average
9INCOME STATEMENT
Loss of revenue weighs on performance
Key figures (In € millions) 2020 2019 CHANGE
Revenue impacted by clubs being closed for 41% of
the time Total revenue 376.8 515.2 -27%
Club revenue 374.9 513.5 -27%
Non-club revenue 2.0 1.7 17%
Club operating costs (187.8) (182.6) 3%
Club cost savings and compensation schemes mainly
Personnel costs (53.3) (74.3) -28%
focused on employee and rent costs Other (134.6) (108.3) 24%
Club EBITDA 187.0 330.9 -43%
Overhead (55.8) (65.1) -14%
Overhead cost savings mainly the result of lower EBITDA 131.2 265.8 -51%
marketing spend D&A (260.6) (211.9) 23%
Depreciation and impairment tangibles (115.8) (92.2) 26%
Amortisation and impairment intangibles (15.8) (13.6) 16%
Growth in depreciation reflects 2019 and 2020 club Depreciation right-of-use assets (129.0) (106.1) 22%
COVID-19 rent credits* 11.2 -
opening programme EBIT (118.2) 53.9
Finance costs (16.1) (12.4) 30%
Interest lease liabilities (29.8) (25.1) 19%
Tax income is mainly explained by the change in Corporation tax 38.9 (5.4)
deferred tax assets for carry-forward losses Net result (125.2) 11.0
* Discounts received from landlords that did not result in contract amendments
10INCOME STATEMENT
Underlying (club) EBITDA and net result
Underlying key figures (In € millions) 2020 2019 CHANGE
Club EBITDA 187.0 330.9 -43% Exceptional items are almost entirely
Rent costs (open clubs) (124.3) (108.1) 15%
Exceptional items - clubs 91.0 0.1
Underlying Club EBITDA (open clubs) 153.8 222.9 -31% COVID-19 related
EBITDA 131.2 265.8 -51%
Rent costs clubs and overhead, incl. car leases (129.1) (115.0) 12% PPA related amortisation of €10.7
Exceptional items - total 91.6 0.5
Underlying EBITDA 93.8 151.3 -38%
Underlying net result* (32.9) 33.5
million in 2020 expected to decrease to
Underlying result per share (in EUR) (0.57) 0.61
€3.8 million in 2021
Underlying net result (in € millions) 2020 2019
Net result (125.2) 11.0
IFRS 16 adjustments 29.8 16.2
Amortisation 10.7 11.1
One-off impairments 1.3 1.2
Valuation differences IRS 0.2 2.2
Exceptional items 1.0 0.5
COVID-19 related exceptional costs 90.6 0.0
COVID-19 rent credits (11.2) 0.0
Tax effects (25%) (30.6) (7.8)
One-off tax effects 0.4 (1.0)
Underlying net result (32.9) 33.5
* Adjusted for IFRS 16, PPA related amortisation, IRS valuation differences, exceptional items, one-offs and the related tax effects.
11MATURE CLUB DEVELOPMENT
Year end mature clubs accounted for 56% of total clubs and 71% of
total club revenue
510 mature clubs compared to 405 at the end of 2019, with 321 (+14)
in Benelux and 189 (+91) in France and Spain
Average number of members per mature club decreased to 2,695;
decrease is larger than on average club as more members are out of
year contract at mature clubs
12CAPITAL EXPENDITURE
Expansion capex
In € millions 2020 2019 Includes €35.4 million investments in yet to open clubs,
Expansion capex (162.9) (229.0)
acquisitions and expansion of existing clubs (2019: €80
million, including Fitland)
Maintenance capex (35.7) (39.1) €1.2 million spent on average per newly built club.
Maintenance capex
Other capex (13.0) (13.8)
€42 thousand per club (2019: €55 thousand)
Total capex (211.6) (281.9) Lower average spend due to temporary club closures
Other capex
We acquired full IP rights of our exclusive membership
administration software
13BALANCE SHEET
Net debt* of €539 million (FY 2019: €451 million)
• Leverage ratio of 4.9 versus 2.5 in 2019 (bank covenants
definition)
• Waiver (Dec-20 & Jun-21) and relaxation (Dec-21) on loan
covenants received
Cash and cash equivalents of €70 million (FY 2019: €66 million)
• Including undrawn facilities €90 million at year-end 2020
€150 million bridge facility received in Feb 2021
• Provides additional financial flexibility for current period with
club closures and to recommence our growth strategy once
measures are lifted
*Net debt (excl. lease liabilities): Total of long- and short-term borrowings, less cash and cash equivalents
14OUTLOOK
When we have reopened our clubs and have more visibility on
the development of COVID-19 and memberships, we will
update the market on our expectations regarding club
openings for 2021 and 2022
We expect to benefit from increased focus on health &
wellbeing after COVID-19, which will lead to a further increase
of the fitness penetration in all countries. With our improved
products we are ready to seize the opportunities that will
come our way
We intent to provide the market an update on trends after
reopening and our strategy at our CMD which we plan for 4
November 2021
15DISCLAIMER
This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of Basic Fit N.V. and its subsidiaries (referred to as 'the
company') and certain of the plans and objectives of the company with respect to these items.
The words "believes", "expects", "may", "will", "could", "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", "positioned" or "anticipates" and
similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding the company's intentions, beliefs or
current expectations concerning, among other things, the company's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the company
operates. The forward-looking statements in this presentation are based on numerous assumptions regarding the company's present and future business strategies and the environment in which
the company will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on
circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the company to be materially different from those expressed or implied
by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control or estimate precisely, such as future market conditions,
currency fluctuations, the behaviour of other market participants, the actions of regulators and other factors such as the company's ability to continue to obtain financing to meet its liquidity
needs, changes in the political, social and regulatory framework in which the company operates or in economic or technological trends or conditions. Past performance should not be taken as an
indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance.
This presentation contains statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data pertaining to the company's business
and markets. Unless otherwise indicated, such information is based on the company's analysis of multiple sources, as well as information obtained from (i) experts, industry associations and data
providers; and (ii) publicly available information from other sources, such as information publicly released by our competitors. To the extent available, any industry, market and competitive
position data contained in this presentation has come from official or third party sources. While the company believes that each of these publications, studies and surveys has been prepared by a
reputable source, the company has not independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in this presentation
come from the company's own internal research and estimates based on the knowledge and experience of the company's management in the markets in which the company operates. While the
company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for
accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this
presentation. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described herein. They may be based on subjective assessments
and assumptions and may use one among alternative methodologies that produce different results and to the extent that they are based on historical information, they should not be relied upon
as an accurate prediction of future performance.
The forward-looking statements contained refer only to the date in which they are made, and the company does not undertake any obligation to update any forward-looking statements.
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