#1cept 2 PERSONAL TRAINER PUREGYM Investor Presentation Results for the quarter ended 30 June 2022 25 August 2022#2Disclaimer Q PUREGYM Forward-looking statements This presentation may include forward-looking statements. All statements other than statements of historical facts included in this presentation, including those regarding the Group's financial position, business & acquisition strategy, plans & objectives of management for future operations are forward-looking statements. Such forward-looking statements involve known & unknown risks, uncertainties & other factors which may cause the actual results, performance or achievements of the Group, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present & future business strategies & the environment in which the Group will operate in the future. Many factors could cause the Group's actual results, performance or achievements to differ materially from those in the forward-looking statements. Forward-looking statements should, therefore, be construed in light of such risk factors & undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this presentation. The Group expressly disclaims any obligations or undertaking, except as required by applicable law & applicable regulations to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Group's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Use of non-IFRS financial information Certain parts of this report contain non-IFRS measures & ratios. We believe that these measures are useful indicators of our ability to incur & service our indebtedness & can assist certain investors, security analysts & other interested parties in evaluating us. Because all companies do not calculate these measures on a consistent basis, our presentation of these measures may not be comparable to measures under the same or similar names used by other companies. Accordingly, undue reliance should not be placed on these measures in this presentation. In particular, Adjusted EBITDA & Run-Rate Adjusted EBITDA are not measures of our financial performance or liquidity under IFRS & should not be considered as an alternative to (a) net income/(loss) for the period as a measure of our operating performance, (b) cash flows from operating, investing & financing activities as a measure of our ability to meet our cash needs or (c) any other measures of performance under IFRS. Investor Presentation 25 August 2022 2#3Introduction & overview Financial results Strategy & outlook Conclusions Appendices Introduction & overview Q2 financial results . • Continued progression in Q2 with revenue up +43% vs 2021 & +8% vs 2019 Adj EBITDA of £26m in the quarter . • Run-rate Adj EBITDA continues its upward trajectory, reaching £114m in Q2 Opened 9 new gyms in Q2, totalling 18 for H1 with a further 5 as of today Excellent liquidity position with £285m of cash & £430m of total accessible funds¹ Outlook • Recovery continues, but consumer confidence, hot weather & strike disruption are not making it easy • We are deploying increased effort, resources & focus on cost management to compliment continued strong focus on revenue management Investment programme is ramping up - Refurbishment is increasing across the owned estate notably in Denmark Expect to open 50+ sites this year across the group (corporate owned & franchise) Building the capability to double that opening and refurbishment rate next year Remaining cautiously positive about the future, despite obvious economic challenges that lie ahead Notes: (1) Includes £30 million cash held by parent, Pinnacle Topco Limited QPUREG PUREGYM Investor Presentation 25 August 2022 3#4Q2 financial results Continued progression in Q2, with Run Rate Adj EBITDA reaching £114m Q VOPUREGYM#5Introduction & overview Financial results Strategy & outlook Conclusions Appendices Q2 2022 Group results highlights Q PUREGYM Revenue & membership ₤119m Q2 revenue up +43% vs Q2 2021 £23.73 ARPM per month up +30% vs Q2 2021 1,666k Closing members up +6% vs Jun 2021 Adjusted EBITDA £26m Adj EBITDA up +58% vs Q2 2021 21.8% Adj EBITDA Margin Up +200bps vs Q2 2021 £114m Run Rate Adj EBITDA up +£8m vs Q1 2022 Group estate 525 Gyms in the estate³ vs 506 gyms at Jun 2021 9 New gyms in Q2 2022 vs 15 in Q2 2021 Liquidity & Cash Flow £285m Cash Vs £76m Jun 2021 SS Net Debt & Capex £562m Net debt4 vs £786m at Jun 2021 £430m Liquidity1,4 vs £221m at Jun 2021 3.5x Proforma net leverage² down from 4.9x at Jun 20215 £24m Capex £21m Operating Cash Flow Up +1% vs Q2 2021 vs £14m in Q2 2021 Notes: (1) Liquidity defined as cash plus available RCF facilities. (2) Includes £30 million cash held by parent, Pinnacle Topco Limited & based on £161m RR Adj EBITDA for 2019. (3) Gyms in estate includes 4 franchise gyms in KSA. (4) Includes £30 million cash held by parent, Pinnacle Topco Limited. (5) Stated using Senior Secured Net Debt as at 30 June 2021 of £786m & RR Adj EBITDA for 2019 of £161m (proforma for the acquisition of Fitness World). Investor Presentation 25 August 2022 5#6Introduction & overview Financial results Strategy & outlook Conclusions Appendices COPURECYM Q2 2022 Group results vs 2019 & 2021 All figures stated to the nearest £ million, except for members (million) & gyms (number) Revenue & membership Revenue Adjusted EBITDA Adj EBITDA¹ Group estate Gyms in estate Liquidity & Cash Flow Available liquidity³ SS Net Debt & Capex SS Net Debt 110 83 119 34 2 26 454 506 525 4304 745 786 16 112 5624 221 Q2 2019 Q2 2021 Q2 2022 Q2 2019 Q2 2021 Q2 2022 Q2 2019 Q2 2021 Q2 2022 Q4 2019 Q2 2021 Q2 2022 Q4 2019 Q2 2021 Q2 2022 Closing members Run Rate Adj EBITDA New sites Cash Flow5 Capex 161 114 15 1.7 1.6 1.7 19 59 8 9 24 21 21 13 14 24 24 Q2 2019 Q2 2021 Q2 2022 Γ Q4 2019 Q4 2021 Q2 2022 Q2 2019 Q2 2021 Q2 2022 Q2 2019 Q2 2021 Q2 2022 Q2 2019 Q2 2021 Q2 2022 Notes: 2019 includes the results of Fitness World on a proforma basis, except for available liquidity & cash flow which are based on PureGym UK only. All figures exclude Poland. (1) In 2021 & 2022, excludes the benefit & cost of any COVID-19 rent deferments. (2) Gyms in estate includes 4 franchise gyms in KSA. (3) Liquidity defined as cash plus available RCF facilities. (4) Includes £30 million cash held by parent, Pinnacle Topco Limited (5) Operating cash flow, stated after maintenance & refurbishment capex but before interest on borrowings or growth capex. Investor Presentation 25 August 2022 6#7Introduction & overview Financial results Strategy & outlook Conclusions Appendices Capital expenditure Momentum building in capital deployment • £17m of expansionary capex in Q2 2022 with 9 new corporate owned site openings. · £7m spend on maintenance & refurbishment works across estate £m 02 2022 02 2021 Expansionary capital expenditure 16.5 10.2 Maintenance & refurb capital expenditure 7.4 4.2 Total capital expenditure 23.9 14.4 Key trends • Some increases in lead times on equipment & key construction items impacting both new site openings & refurbishments Ongoing cost inflation is being carefully managed, with a sharp focus on value engineering to limit impact Good sites in good locations are frequently contested but PureGym's strength increasingly recognised by landlords PUREGYM Investor Presentation 25 August 2022 7#8Introduction & overview Financial results Strategy & outlook Conclusions Appendices Senior Secured Net Debt is significantly lower than pre-Covid at £562m, with available liquidity of £430m Proforma leverage is lower than pre-Covid Proforma Net Debt COPUREGYM Liquidity 4 £160m SS Net Debt £745m 4.6x1 £430m³ £562m³ As at 30 June 2022 £m Cash 2843 3,5 Senior Secured Sterling Notes 6.375% (430) 3.5x2 Senior Secured EUR Notes 5.5% (416) Senior Secured Net Debt (562) Non-property leases/other (10) Total Net Debt (572) FY19 Proforma RR Adj EBITDA Illustrative leverage 2 161 3.5x 31 Dec 2019 Pre-COVID 30 June 2022 Notes (1) Proforma for the acquisition of Fitness World. Based on Dec-19A Run-Rate Adj. EBITDA of £161m, based on Dec-19PF Senior Secured Net Debt of £745m (consisting of the Sterling Notes (£430m), the Euro Bridge Facility (£380m, converted using LTM average FX rate of EUR 1.1711 to £1) less cash (£65m as converted at average rates of exchange for the LTM period) & including certain adjustments) & Dec-19A Proforma Run-Rate Adj. EBITDA of £161m. (2) Based on FY19 RR Adj EBITDA of £161m proforma for Fitness World & Jun-22A Senior Secured Net Debt of £562m (consisting of the Sterling Notes (£430m), the Euro Notes (£416m, converted using LTM average FX rate of EUR 1.178 to £1) less cash (£284m as converted at average rates of exchange for the LTM period & including £30m cash held by parent company, Pinnacle Topco Limited)). (3) Includes £30m held by parent company, Pinnacle Topco Limited. (4) Liquidity defined as cash plus available RCF facilities. (5) Non-sterling cash balances converted at average rates of exchange for the LTM period. Differs from cash & liquidity figures reported elsewhere which are converted using closing exchange rates Investor Presentation 25 August 2022 8#9UN Energy PUREGYM Strategy & outlook Notwithstanding the headwinds, overall momentum of strategic execution is building well - enabled by significant equity capital raise completed in Q1#10Introduction & overview Financial results Strategy & outlook Conclusions Appendices The strategy we outlined in our FY21 update is now fully "in flight" Q 1 3 Accelerate growth through franchise in Middle East/Asia & USA Investment in risk management, governance, discipline & controls to ensure quality of execution 2 4 Invest to grow in UK & CH Invest to strengthen in DK Invest in digital & tech to open up new opportunities & better engagement with existing customers PUREGYM Investor Presentation 25 August 2022 10#11Introduction & overview Financial results Strategy & outlook Conclusions Appendices A clear strategy is being executed to realise the full potential of the business in Denmark Fitness World Footprint Q Aalborg Aarhus Odense Fitness World site #1 1 Estate optimisation with particular focus on Copenhagen & other major cities Denmark Copenhagen 2 £55m+ capital investment over the next 2-3 years to upgrade product & member experience 3 Improved revenue management - key to driving performance & optimising our position vs the competition 4 Revitalised management, organisation & culture PUREGYM Investor Presentation 25 August 2022 11#12Introduction & overview Financial results Strategy & outlook Conclusions Appendices Q PUREGYM Denmark estate optimisation & investment (1/2): Aarhus & Randers have served as a test bed for rolling out an improved product Current position in Aarhus & Randers (2nd largest population centre in Denmark) Geding True Tilst LISBJERG SKEJBY AARHUS NSKEJBY VEJLBY RISSKO Risskov VEJLBY Brendstrup Risskov Arhus N., Vejlby Ringv... ARHUS MARKJORDER Århus V., Viborgvej Trøjborg ARHUS V Arhus N JBV Aarh Århus C., Nørreport AABYHOJ Brabrand, Cityvest Busgaden, Århus Arhus C., Scandinavian AABY AARHUS C Randers, Gamle Hobrovej Arhus C., Dalgas Avenue! Brabrand Gellerup Brabrand Sp Key steps we have taken/are taking to optimise estate Dronningb Aarhus . "JBV": Biggest gym in Scandinavia refurbished in late 2020 "Scandinavian": recalibration of size to meet member potential "Trøjborg": transfer of 1 site - very close to another FW site - to a greenfield area further North "Tilst": transferring to new site in October Lemming lager Stavtrup Viby, Skanderborgvej Viby Viby HOLME Højbjerg, Rundhøj Torv Slet Refurbished in 2022 Opened in 2022 Højbjergkker Skåde Refurbished in 2020-2021 strup RANDE Randers, Thors bakke Randers Vorup Kristrup Århusvej, Randers Randers • Closing 1 site & moving another to a better location Change to Commercial Proposition Variable pricing introduced across the region Refined commercial product choices provided Investor Presentation 25 August 2022 12#13Introduction & overview Financial results Strategy & outlook Conclusions Appendices COPUREGYM Denmark estate optimisation & investment (2/2): Programme is now rolling out to the key market of greater Copenhagen In Copenhagen we co-exist with one other major operator - SATS Kirke Værløse 233 Knardrup 233 Søndersø Værløse Sorgenfri Bagsværd Hareskovby 16 04 Kongens Lyngby Taarbæk Fortunen Klampenborg E47 Jægersborg 211 Málov Egebjerg 211 ent dinge Vangede Hjortespring 03 Søbor Gladsaxe Smørumnedre Pederstrup Smarum Herlev 04 211 211 Mørkhoj Ballerup. Skovshoved Charlottenlund Hellerup 152 Tuborgvej Emdru 02 NORDHAVN Skovlundel KØBENHAVN NV 04 E47 HUSUM BRØNSHØJ Ledøje 17 Harrestrup Ejby Vridsløsemagle Taastrup 04 Risby 04 Herstedøster Herstedvester Vridsløselille Albertslund 17 03 Gloup E47 Brøndbyøster astrup Høje Taastr 21 Vallensbæk Brøndby 21 Avedøre 04 03 Vallensbæk Landsby 243 04 Ishøj Landsby Tranegilde 243 ebrønde Hu E20 Ishøj Islev VANLØS Rødovre 21 ØSTERBR Langelinie EBRO KOBE AVN K 02 Frederiksberg INDRE BY nh n KØBENHAVN V ager VALBY Vigerslev 02 Refshaleøen AGER ØST Sundbyøster SYDHAVNEN 151 Vidovre Royal Golf Center K. Sundbyvester 20 E20 Friheden Brøndby Vallensbæk Strand Strand ARKEN Museum for Moderne Kuns! Midlertidig lukket Google My Maps E20 E20 Avedore Holme E20 E20 Tårnby Maglebylille Kastrup ... & our strategy for remaining market leader is clear . . Maintain overall estate advantage 27 FW vs 12 SATS sites in central Copenhagen 53 FW vs 21 SATS sites in Greater Copenhagen Open new sites where pools of unfulfilled demand exists. (eg Albertslund) Seek consolidation opportunities where appropriate Invest significant capital to materially upgrade quality of member experience O 18 sites already scoped for 2022 Further sites targeted for reinvestment in 2023 • Ensure 'great value' pricing & use variable pricing to optimise position • Fine tune product offering to the specific site conditions & local market demand Fitness World SATS Investor Presentation 25 August 2022 13#14Introduction & overview Financial results Strategy & outlook Conclusions Appendices Investment that transforms member experience to the Group standard & offers “boutique fitness experience at value gym price" GO FITNESS WORLD FITNESS WORLD 223K Witness the FITNESS PUREGYM Investor Presentation 25 August 2022 14#15Introduction & overview Financial results Strategy & outlook Conclusions Appendices We are applying the Group's pricing & revenue management toolkit in Denmark NOTEC Optimal positioning: towards premium end of value segment Premier Inn vs Travelodge • Maintain investment in product... make it better over time Invest to build brand awareness & consideration • But never move away from being great value Set site-level prices based on local market situation • 159 DKK in Helsingør, 299 DKK in Ørestaden • ALL products can be priced differently in all gyms Lower prices to grow market and/or gain share Higher prices to capture upside Prices may rise or fall over time Drive premiumisation enhancing yield from those willing to pay Plus: 50-100 DKK extra for multiple added benefits Bolts-ons: 。 20-50 DKK for group fitness 。 119 DKK for nutrition subscription 。 Option to upgrade gym access, delivering incremental revenue COPUREGYM Investor Presentation 25 August 2022 15#16Introduction & overview Financial results Strategy & outlook Conclusions Appendices COPURECYM Variable pricing & disciplined management of promotions will be key factors in our revenue management approach in Denmark Variable pricing allows tailoring in each market Monthly core membership price by gym & city, August 2022 Significantly reduced promotional pressure aims to lift value in the market Number of promotion days 2019 vs 2022 DKK/Month 400 350 Ørestaden 300 Risskov Langagervej 250 200 T Klokkestøbervej 35 30 25 Solrød Strand All clubs All Clubs Vesterbro 150 Tomsgårdsvej Skanderborgvej Dannebrogsgade Helsingør Promo days/month 100 5 50 0 0 Copenhagen Aarhus Odense Aalborg Esbjerg Randers All other Jan Feb Mar Apr May Jun Jul Larger cities have a spread of prices to cover different competitive & demographic location profiles • Smaller cities follow cluster strategy approach with fewer / single price points to limit internal cannibalisation • • 2019 avg 2019 -39% 2022 2022 avg • Frequency: number of days on promotion limited to reduce costs Depth: promotion tailored to deliver required results Specificity: activities targeted by gym to avoid investment waste Investor Presentation 25 August 2022 16#17Introduction & overview Financial results Strategy & outlook Conclusions Appendices We passionately believe that our people, organisation & culture will make the difference in driving success in Denmark New senior leadership & management Reformed operational organisation Regain focus on culture & belonging • Business managed by Morten Bentzen - a seasoned executive from the "Telco" school • Full refresh of senior management team - Finance, Commercial, Marketing, IT & Operations . · New mindset determined to implement best practice & keep innovating Distraction of Poland, Switzerland & other complexities removed to facilitate focus on Denmark ⚫ Re-establish the role of gym managers "owning" their club, NPS measures & member experience • Streamlined management organisation with clearer connection to PG Group expertise Clear articulation of values, behaviours & attitudes • Alignment of incentives & rewards Embracing being part of the PureGym Group COPURECYM Investor Presentation 25 August 2022 17#18Introduction & overview Financial results Strategy & outlook Conclusions Appendices In summary...'Invest to Strengthen' in Denmark #1 1 Estate optimisation with particular focus on Copenhagen & other major cities 2 £55m+ capital investment over the next 2-3 years to upgrade product & member experience Improved revenue management - key to driving 3 performance & optimising our position vs the competition 4 Revitalised management, organisation & culture FITNESS WORLD COPUREGYM Investor Presentation 25 August 2022 18#19Introduction & overview Financial results Strategy & outlook Conclusions Appendices Group: Overall picture & outlook Clearly facing challenging times now & into the future - hard to make predictions as storm clouds gather • Near term disruption - transport strikes, heat/weather etc. - definitely a headwind for business momentum - everyone is seeing that • Consumers "feeling the pinch" & being careful how they spend constrained disposable income • Cost inflation is biting on capex & some aspects of opex • We are very attentive to the needs of our colleagues facing the cost of living crisis. We nevertheless remain well positioned to weather the storm ⚫ No evidence of a "buyers strike" - albeit a degree of consumer caution on memberships • • . Reassuring research (internal & 3rd party) suggests consumers continue to attach a high priority to maintaining gym memberships vs other more discretionary spend Benefit of a structurally low labour & low operating cost model (no heated swimming pools!) Increasing resource & effort dedicated to all areas of cost management • We enjoy a fair degree of pricing power & a very high level of pricing/revenue control And are reassured by & remain committed to new site opening & site refurbishment plans • New sites continue to perform very well due to format flexibility, site selection & tailored management • Volume of refurbishments are increasing & capital is delivering a modest but positive rate of return QP PUREGYM Investor Presentation 25 August 2022 19#20D en vasor AVOSO CFITNESS TEAM О PUREGYM Conclusions Continued progression despite the challenges with good momentum for future growth 25#21Introduction & overview Financial results Strategy & outlook Conclusions Appendices Conclusions 1 Continued progression in Q2 with revenue up +43% on Q2 2021 & +8% on Q2 2019 2 3 Run Rate Adj EBITDA continues its upward trajectory, reaching £114m by the end of Q2 2022 A resilient & strong liquidity position - with £285m of cash & £430m of total accessible funds 6 5 4 Little doubt that there are challenges ahead but we are well set up to weather the storm Clear focus on mitigating demand & cost pressures through management action & yield management Clear plan to invest significantly to strengthen estate & drive performance Q 7 Strong new site performance & good momentum in the global pipeline - both remain key drivers of future growth PUREGYM Investor Presentation 25 August 2022 21#22KIRTAM P 16 16 16 P PRES P 16 16 REDW Pr 18 18 18 18 18 18 O Ро 28 28 26 26 26 26 26 P P 28 Appendices JOD JORDAN MJEST are no excuse 22 22 24 JORDAN PUREOTH 10 PPU PUREGYM#23Introduction & overview Financial results Strategy & outlook Conclusions Appendices Corporate structure Notes £285 m of cash on balance sheet across the Group as at 30 Jun 20223 LGP Pinnacle Topco Limited Pinnacle Midco 2 Limited Management £300m GBP KKR convertible preferred equity shares Q PUREGYM Restricted Group £430m GBP Senior Secured Notes £422m¹ EUR Senior Secured Notes Pinnacle Bidco plc Undrawn £145m GBP Revolving Credit Facility I PureGym Limited UK Subsidiaries4 Key: Indirect Holdings PureFitness LLC (USA) PureFitness Franchising LLC (USA) Functional Supply A/S Fitness World A/S PureGym AG (prev. Basefit.ch) Fitness Institute ApS Issuer Trading Entity Guarantors² Non-Guarantors (1) EUR denominated €490 million Senior Secured Notes (converted to pounds sterling at the 30 June 2022 closing rate of €1.162 to £1.0000). (2) The Guarantors accounted for 99% of Group Run-Rate Adjusted EBITDA for the year ended 31 December 2021, & substantially all of the Group's total assets as of 31 December 2021. (3) £30m of which is held on the balance sheet of Pinnacle Topco Limited. (4) Includes LA Leisure Limited & Ovalhouse Limited Investor Presentation 25 August 2022 23#24Introduction & overview Financial results Strategy & outlook Conclusions Appendices COPUREGYM Group cash flow Q2 2022 • • Group Adjusted EBITDA of £26m converted to £21m of operating cash inflow Cash inflow from working capital movement due to new site roll-out. Inflow lower than prior year due to settlement of deferred liabilities, as well as changes in operating model in Switzerland to monthly membership • Maintenance & refurbishment capex at £6.4m in the quarter, reflecting a rising number of refurbishments as the Group invests in the existing estate . Expansionary capex includes expenditure on the completion of 9 new corporate owned sites opened in the quarter & commencement of works on new sites to be opened after the period end Cash outflow for exceptional items in the period mainly reflects the settlement of exceptional expenditure incurred in 2021 "Other" cash outflow mainly relates to the repayment of Covid rent due from prior periods • Other financing cash outflows of £7.2m includes the repayment of short term financing £m Group Adjusted EBITDA Group operating cash flow Operating cash flow conversion Expansionary capital expenditure Exceptional items 3 months ended 30 Jun 6 months ended 30 Jun 2022 2021 2022 2021 25.9 16.4 50.9 (9.0) Movement in working capital 1.9 9.3 (8.8) 7.3 Maintenance & refurb capital expenditure (6.4) (4.6) (9.0) (6.1) 21.4 21.1 33.2 (7.7) 82% 129% 65% n/a (15.7) (12.5) (25.2) (21.2) (1.5) (4.6) (1.7) 6.1 (11.8) (11.7) (26.0) (26.8) (4.9) (6.6) (16.4) (6.0) Net cash flow before acquisition & financing Issue of senior secured notes Equity injection (12.6) (14.2) (36.1) (55.6) 38.9 270.0 (1.6) (2.0) (3.2) (3.9) (7.2) 6.7 (9.6) 6.8 (21.5) (9.5) 221.1 (13.7) Tax, interest, & debt issue costs Other Finance lease capital repayments Other financing cash flows Net cash flow Investor Presentation 25 August 2022 24#25Introduction & overview Financial results Strategy & outlook Conclusions Appendices Segmental performance Notes: £m 3 months ending 30 June 12 months ending 31 December 2022 2021 Change % 2021 20201 Change % United Kingdom 77 55 40% 194 142 36% Denmark 34 21 57% 90 103 (13)% Switzerland 8 6 26% 24 24 (2)% Other 0 n/a n/a Total Revenue 119 83 43% 308 270 14% United Kingdom 21 21 (1)% 44 7 492% Denmark 6 (5) n/a (5) 4 n/a Switzerland 0 n/a 1 (0) n/a Other (1) n/a 27% n/a Total Adjusted EBITDA² 26 16 58% 40 11 249% United Kingdom 27% 38% 22% 5% Denmark 16% (21)% (5)% 4% Switzerland 6% 3% 5% (0)% Other n/a n/a n/a n/a Adjusted EBITDA margin 22% 20% 13% 4% (1) The 2020 results of Poland have been excluded as the business was sold in the year & is treated as a discontinued operation in the Group financial statements. (2) In 2020 & 2021, the cash rent adjustment excludes the impact of COVID-19 rent deferments. Therefore, Adjusted EBITDA more closely reflects the underlying trading results of the Group for the period COPUREGYM Investor Presentation 25 August 2022 25#26Introduction & overview Financial results Strategy & outlook Conclusions Appendices Key performance indicators For the twelve For the three months ended 30 Jun For the six months months ended ended 30 Jun 31 Dec £m Total number of corporate-owned gyms Total number of franchise gyms Total number of gyms Total number of members ('000s) 2022 2021 2022 2021 2019PF 521 506 521 506 484 4 4 525 506 525 506 484 1,665 1,565 1,665 1,565 1,699 Average number of members ('000s) 1,666 1,506 1,655 1,469 1,682 Average number of members per gym 3,227 3,004 3,226 2,954 3,683 Average revenue per member per month (£) 23.73 18.30 23.59 9.44 21.90 Reported EBITDA (£ million) 47.7 33.9 94.3 26.9 206.9 Adjusted EBITDA (£ million) 25.9 16.4 50.9 (9.0) 131.1 Adjusted EBITDA margin 21.8% 19.8% 21.7% (10.8)% 29.7% Gym Site Adjusted EBITDA (£ million) 41.8 32.5 82.9 13.7 170.7 Gym Site Adjusted EBITDA margin 35.2% 39.3% 35.4% 16.4% 38.6% Run-Rate Adjusted EBITDA (£ million) 114.0 39.6 114.0 39.6 160.6 Operating Cash Flow (£ million) 21.4 21.1 33.2 (7.7) 101.2 Operating Cash Flow Conversion 82.4% 128.8% 65.2% n/a 77.2% Senior Secured Net Debt (£ million) 562.11 786.4 562.11 786.4 744.6 Ratio of Senior Secured Net Debt to LTM Run-Rate Adjusted EBITDA 4.9x 19.9x 4.9x 19.9x 4.6x Ratio of LTM Run-Rate Adjusted EBITDA to Pro Forma Net Interest Expense 2.1x 0.7x 2.1x 0.7x 3.1x Notes: All figures have been adjusted to exclude Poland as it is a discontinued operation. Fitness World results have been included in the 2020 Group results since the acquisition on 14 January 2020 (1) Includes £30 million cash held by Pinnacle Topco Limited COPURECYM Investor Presentation 25 August 2022 26#27Introduction & overview Financial results Strategy & outlook Conclusions Appendices Reconciliation from Loss to Adjusted EBITDA & Run-Rate Adjusted EBITDA For the three months ended 30 Jun For the six months COPUREGYM For the twelve months ended ended 30 Jun 31 December £m Loss for the period Income tax 2022 2021 2022 2021 2019PF (23.6) (37.4) (44.7) (92.1) (28.5) 2.2 (10.1) 0.8 (16.2) (3.7) Net finance cost 36.4 36.5 73.1 59.6 101.5 Depreciation & impairment of PPE Amortisation & impairment of intangible assets 27.5 30.0 54.6 57.1 99.1 5.4 11.7 10.5 21.0 19.7 (Profit) loss on disposal of property, plant & equipment (0.1) 1.1 (0.1) 0.9 0.1 Profit on lease modifications (0.4) (0.4) (0.4) Exceptional administrative expenses 2.6 3.1 11.6 Group Reported EBITDA¹ 47.7 33.9 94.3 26.9 206.9 Other adjustments² 2.0 1.0 3.5 2.4 0.8 Share based payment charge³ 0.1 0.1 0.2 0.2 0.3 Pre-Opening Costs4 Cash Rent Adjustment5 Adjusted EBITDA Head office costs Gym Site Adjusted EBITDA 0.9 1.5 2.0 1.9 3.6 (24.9) (20.1) (49.2) (40.3) (80.4) 25.9 16.4 50.9 (9.0) 131.1 15.8 16.1 32.07 22.6 39.5 41.8 32.5 82.9 13.7 170.7 LTM Adjusted EBITDA Run-Rate Adjustment6 Run-Rate Adjusted EBITDA (LTM) 99.6 (1.3) 99.6 (1.3) 131.1 14.3 40.9 14.3 40.9 29.5 114.0 39.6 114.0 39.6 160.6 (1) Group Reported EBITDA is defined as earnings before net finance cost, taxation, depreciation, amortisation, profit/loss on sale of property, plant & equipment, impairment, profit/loss on lease modifications & exceptional items. (2) Other adjustments includes the net impact of various one-off items not included in "Exceptional items" but which are not reflective of the underlying trade of the Group. (3) The share based payment charge relates to shares in the ultimate parent company, Pinnacle Topco Limited, issued to directors & certain employees. (4) Pre-opening costs represent the total of all gym site operating costs incurred prior to the opening of a new gym & primarily consist of staff costs & marketing. (5) Under IFRS 16, most lease costs are excluded from Group Reported EBITDA. To produce a comparable & more relevant EBITDA figure, the contractual property rent payments due during the accounting period are deducted & any property rent-related expenses included in Group Reported EBITDA are added back. Management believes that adjusting EBITDA to reflect cash rent is a better reflection of actual earnings. (6) The Run-Rate adjustment reflects the impact of those gyms which are less than three years old at the end of the reporting period. These adjustments replace the Adjusted EBITDA earned by these sites in the last twelve month period with the projected Adjusted EBITDA for their third year of operation. Run-Rate Adjusted EBITDA therefore seeks to reflect the anticipated mature Adjusted EBITDA potential of those gyms which were trading at the end of the relevant period. Management forecasts EBITDA on a gym specific basis & updates forecasts quarterly based on current & anticipated performance, taking into account seasonality & location-specific factors. (7) Head office costs reported in the Q1 2022 presentation for the three months ended 31 March 2022 of £18.2m have been adjusted to £16.2m due to a misallocation between gym & head office costs. Adjusted EBITDA is not impacted by this adjustment. Investor Presentation 25 August 2022 27#28Introduction & overview Financial results Strategy & outlook Conclusions Appendices Glossary Q PUREGYM Term Adjusted EBITDA Adjusted EBITDA Margin Average Number of Members Average Revenue Per Member Per Month Cash Rent Adjustment Combined Group EBITDA Expansionary Capital Expenditure Fitness World or Fitness World Group Gym Site Adjusted EBITDA Definition The profit or loss for a certain period before income tax expense, net finance cost, depreciation & impairment of property, plant & equipment & right of use assets, amortisation & impairment of intangible fixed assets, profit/loss on disposal of property, plant & equipment, profit/loss on lease modifications, exceptional administrative expenses, & adjustments, after adding back Pre-Opening Costs & share based payment charges, & subtracting the Cash Rent Adjustment. Adjusted EBITDA for that period divided by revenue for that period. The average of the number of members as at the beginning of the first month & the end of every month in that period. Revenue for that period divided by the number of months in that period & further divided by the average number of members during that period. The average number of members during that period is calculated as the average of the number of members as of the beginning of the first month & the end of every month in that period. The deduction of the cash rent payable during the period which otherwise was not reflected in EBITDA (as reported on an IFRS16 basis). From 2021 onwards, the Cash Rent Adjustment excludes the cash impact of COVID-19 rent deferments. Therefore, Adjusted EBITDA more closely reflects the underlying trading results of the group for the period. Refers to Pure Gym & Fitness World. The profit or loss for a certain period before income tax expense, net finance cost, depreciation & impairment of property, plant & equipment & right of use assets, amortisation & impairment of intangible fixed assets, profit/loss on disposal of property, plant & equipment, profit/loss on lease modifications & exceptional administrative expenses. The Initial Capital Investment & the capital costs of expanding gym sites incurred in that period, & the capital costs of investments in technology in that period. Refers to Forward TopCo A/S & its subsidiaries. Adjusted EBITDA for that period, excluding Head Office Costs. Gym Site Adjusted EBITDA Margin Gym Site Adjusted EBITDA divided by revenue for that period. Head Office Costs Large Box Format (LBF) All non-gym specific costs, other than depreciation & amortisation, related to the operation of head office functions in a given period. Large Box Format (LBF) gyms are gyms that are typically over 12,000 square feet in size. Investor Presentation 25 August 2022 28#29Introduction & overview Financial results Strategy & outlook Conclusions Appendices Glossary COPURECYM Term Maintenance & Refurbishment Capital Expenditures Mature Gyms Net Debt New Gyms Number of Gyms Operating Cash Flow Operating Cash Flow Conversion Pre-Opening Costs Proforma Run Rate Adjusted EBITDA Run-Rate Adjusted Run-Rate Adjusted EBITDA Senior Secured Net Debt Small Box Format (SBF) Working Capital Cash Flow Definition The total capital expenditure incurred in a period less Expansionary Capital Expenditure incurred in that period. The gyms that have been open as Pure Gyms for 24 months or more or as Fitness World clubs open as for 24 months or more as of the end of the relevant reporting period. Total indebtedness of the Group including finance lease liabilities as reported under IAS17 (excluding property lease liabilities recognised under IFRS 16) less cash & cash equivalents. The gyms that have been open as Pure Gyms for less than 24 months or Fitness World clubs for less than 24 months as of the end of the relevant reporting period. The total number of gyms that are open & trading as of the specified date or the end date of the relevant period. Adjusted EBITDA plus Working Capital Cash Flow & less Maintenance & Corporate Capital Expenditure cash flows for that period. The Operating Cash Flow for that period divided by Adjusted EBITDA for that period. The total of all gym site operating costs incurred during the pre-opening periods of gyms in that period. Pre-Opening Costs primarily consist of staff & marketing expenses. Run Rate Adjusted EBITDA for the twelve months ended on the reporting date, after giving pro forma effect to the recent acquisition of Fitness World as if the acquisition occurred on the first day of the period & including synergies expected to be realised from the combined Group. The adjustment made to those gyms which are less than three years old at the end of the reporting period. These adjustments replace the Adjusted EBITDA earned by these sites in the last twelve month period with the projected Adjusted EBITDA for their third year of operation. The Adjusted EBITDA including any Run Rate Adjustment. The total senior secured indebtedness of the Group (excluding finance lease liabilities as reported under IAS17), less cash & cash equivalents. Small Box Format (SBF) gyms are gyms that are typically 6,000-9,000 square feet in size. Cash movements in working capital. Investor Presentation 25 August 2022 29#30Investor Contact Details PureGym Town Centre House Merrion Centre Leeds LS2 8LY Website: corporate.puregym.com Email: [email protected]