Investor Presentation

Non-GAAP reconciliation: H1 '19 location gross profit (loss) from membership and service revenue and Location contribution margin for buildings at various maturity cohorts Total Consolidated ($ in millions) 0-6 Months 7-12 Months 13 - 24 Months +25 Months Other(2) All locations Location gross profit (loss) from membership and service revenue calculated in accordance with GAAP: Membership and service revenue $163 $272 $345 $547 $22 $1,349 Cost of membership and service revenue: Location operating expenses (exclusive of depreciation and amortization shown separately below) Depreciation and amortization - relating to location operating expenses (201) (258) (288) (435) (51) (1,233) (38) (47) (52) (85) (9) (230) Total cost of membership and service revenue (239) (305) (340) (520) (60) (1,463) Location gross profit (loss) from membership and service revenue ($76) ($33) $5 $28 ($38) ($114) Location gross profit (loss) margin percentage (47%) (12%) 1% 5% (8%) Reconciliation of GAAP location gross profit (loss) from membership and service revenue to non-GAAP location contribution margin: Location gross profit (loss) from membership and service revenue ($76) ($33) $5 $28 ($38) ($114) Add: Depreciation and amortization - relating to location operating expenses 38 47 52 52 85 9 230 Stock-based compensation expense (as included in location operating expenses) (1) | I 26 26 26 Location contribution margin ($38) $14 Impact of non-cash GAAP straight-line lease cost (as included in location operating expenses) on location contribution margin 71 57 43 54 $57 $102 (4) 142 17 5 198 Location contribution margin percentage (24%) 5% 17% 21% 10% Non-cash GAAP straight-line lease cost as a % of membership and service revenue 44% 21% 12% 4% 15% Benefit of non-cash amortization of lease incentives as a % of membership and service revenue (8%) (4%) (5%) (5%) (5%) (1) (2) Represents the non-cash expense of our equity compensation arrangements for employees whose payroll is included in location operating expense. Stock-based compensation expense is not allocated at the location level. The "Other" cohort relates to membership and service revenue related to management fees earned for providing services to unconsolidated locations in India and revenue, location operating expenses, and depreciation relating to locations that also serve as headquarters locations that are not included in the Company's cohort analysis, as performance of these locations is not representative of our open locations 30

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