SPEAKERS: René Moos, CEO & Hans van der Aar, CFO
DATE: 23 July 2021
HIGHLIGHTS
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Performance largely defined by COVID-19 related government measures
Clubs
973Up 17%
year on year
Members
2.01 millionDown 8%
year on year
Revenue
€53 millionDown 71%
year on year
Available liquidity
€497 million
CLUBS WERE CLOSED FOR 81% OF THE TIME IN HY 2021
Clubs in NL were open for 6 weeks and in BE/FR for 3 weeks
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Clubs in the Netherlands reopened on 19 May; restrictions have since been eased allowing members to workout at their time of choice
Belgian and French clubs reopened on 9 June with limited restrictions; pass sanitaire is required since 21 July
Spain remained open the entire period with restrictions that only recently have been eased
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Record number of joiners and low churn rates after reopening RECORD MEMBERSHIP GROWTH IN JUNE 2021
Monthly joiners Basic-Fit clubs 2021 vs. 2020/2019
Limited number of joiners with only clubs in
Spain and Luxembourg open (1)
Start of a strong recovery with our clubs in the
Netherlands reopening on 19 May (2)
Record monthly joiners in June thanks to further
growth in the Netherlands and the reopening of
our clubs in Belgium and France on 9 June (3)
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68 NET CLUB OPENINGS
973 clubs compared to 905 at the end of 2020
and 831 in H1 2020 (+17%)
• France +45 clubs (+99 yoy)
• Belgium +12 clubs (+17 yoy)
• Netherlands +5 clubs (+14 yoy)
• Spain +6 clubs (+12 yoy)
We expect to end 2021 with around 1,010 clubs
SPAIN 50
BELGIUM 205
LUXEMBOURG 10
NETHERLANDS 216
FRANCE 492
Remain focused on organic growth, but we will look opportunistically at
acquisition opportunities
Net new club openings of around 105 to 1,010 in 2021
Acceleration of club rollout in 2022, reaching 1,250 clubs by the end of 2022
Pandemic clause in over 90% of new club rent contracts
READY FOR ACCELERATED GROWTH
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Ample liquidity to finance club roll-out plans
Club openings pipeline (# clubs)
FINANCIAL REVIEW
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More than €200 million revenue loss due to club closures
REVENUE
* H1 2020 using average 2.25 million members, H1 2021 using average 1.85 million members
All memberships in the Netherlands,
Belgium and France were on freeze during
closure
€216 million revenue loss in H1 2021 due to
membership freeze and compensation
In € millions
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Club closures determining factor in H1 2021
INCOME STATEMENT
Revenue impacted by clubs being closed for 81% of the time in H1 2021 vs. 49% in H1 2020
Lower club personnel costs due to longer period of government support schemes
Other club costs lower thanks to government support, lower maintenance costs and lower costs of goods sold
Lower overhead cost thanks to higher government support for HQ personnel wages and lower marketing spend
Depreciation charges reflect our growing club network
* Discounts received from landlords that did not result in contract amendments
H1 2021 H1 2020Key figures (in € millions) unaudited unaudited
Total revenue 53.0 182.5Club revenue 52.1 181.7
Non-club revenue 0.8 0.8Club operating costs (52.5) (85.2)
Personnel costs (8.4) (22.1)Other (44.1) (63.2)
Club EBITDA (0.4) 96.5Overhead (19.8) (26.6)EBITDA (20.2) 69.9D&A (137.3) (125.1)
Depreciation and impairment tangibles (61.0) (55.2)Amortisation and impairment intangibles (4.7) (7.8)
Depreciation right-of-use assets (71.6) (62.1)COVID-19 rent credits* 16.9 8.6 EBIT (140.5) (46.6)Finance costs (10.6) (6.8)Interest lease liabilities (16.6) (14.0)Corporation tax 42.1 15.4Net result (125.6) (51.9)
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Underlying (club) EBITDA and net result
INCOME STATEMENT
Invoiced rent costs increased in line with growth
club network
Exceptional items are almost entirely COVID-19
related
PPA related amortisation decreased in line with
guidance (from €10.7 million in 2020 to ca. €3.8
million in 2021)
* Adjusted for IFRS 16, PPA related amortisation, IRS valuation differences, exceptional items, one-offs and the related tax effects.
Underlying key figures (in € millions) H1 2021 H1 2020unaudited unaudited
Club EBITDA (0.4) 96.5Rent costs (opened clubs) (63.0) (54.3)Exceptional items - clubs 72.1 49.4Underlying club EBITDA (open clubs) 8.7 91.5
EBITDA (20.2) 69.9Rent costs clubs and overhead, incl. car leases (64.6) (57.1)Exceptional items - total 72.2 49.4Underlying EBITDA (12.5) 62.2
Underlying net result* (65.6) (2.7)Basic underlying result per share (in €) (1.06) (0.05)Diluted underlying result per share (in €) (1.06) (0.05)
Underlying net result (in € millions)H1 2021
unaudited
H1 2020
unaudited
Net result (125.6) (51.9)IFRS 16 adjustments 23.6 18.9PPA amortisation 2.0 5.4Valuation differences IRS (1.0) 0.6Exceptional items 0.3 0.1COVID-19 related exceptional costs 72.0 49.3COVID-19 rent credits (16.9) (8.6)Tax effects (25%) (20.0) (16.4)Underlying net result (65.6) (2.7)
MATURE CLUB DEVELOPMENT
617 mature clubs compared to 510 at the end of 2020, with 336
(+15) in Benelux and 281 (+92) in France and Spain
Mature clubs now account for 63% of total clubs at the end of June
2021
Average number of members per mature club was 2,540 at the end of
June 2021 (2020: 2,695)
In the 3 to 6 weeks since reopening, we recorded growth of 250
members per mature club
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CAPITAL EXPENDITURE
Expansion capex
€1.17 million (H1 2020: €1.23 million) spent on average
per newly built club
Maintenance capex
€14 thousand per club (H1 2020: €22 thousand)
Further roll out of smart camera system
End of 2021 entire Benelux should be connected
Other capex
€4.1 million (H1 2020: €6.9)
Ongoing investments in software development and
innovations
BALANCE SHEET
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Net debt* of €420 million (FY 2020: €539 million)
Available liquidity of €497 million (FY 2020: €90 million)
• Cash at hand €207 million (FY 2020: €70 million)
• Undrawn facilities €290 million (FY 2020: €20 million)
€150 million bridge facility repaid and cancelled
Waiver Jun-2021 and relaxation Dec-2021 on loan covenants
• Dec-2021 covenant based on 4 x Q4 2021 underlying EBITDA
• Jun-2022 covenant based on 2 x Q4 2021 and H1 2022 underlying EBITDA
*Net debt (excl. lease liabilities): Total of long- and short-term borrowings, less cash and cash equivalents
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Net new club openings of around 105 in 2021
Ample liquidity available
Acceleration of club rollout in 2022, reaching close to 1,250 clubs by the end of 2022
We will continue to be flexible and adjust the timing or pace of club openings if government measures adversely affect market conditions
OUTLOOK
DISCLAIMER
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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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