Blackwells Capital Activist Presentation Deck
■
■
■
■
■
Nike could diversify away from its legacy consumer retail business
Immediate ability to bundle with 300 million members of Nike's membership program
Gains significant customer data edge for Nike product development and customer targeting
Nike has a robust opportunity to integrate its existing apps and platforms:
Nike Training Club: Nike's Nike Training Club is an app that aims to aid its users by
creating stronger fitness habits and establishing goals, creating an opportunity to integrate
the planning-focused aspects of the system with Peloton's vast content base
BW
POTENTIAL STRATEGIC ACQUIRERS
NIKE
Nike could drive future growth in its consumer fitness segment
Celebrity Endorsements: Nike has one of the most impressive rosters of celebrity
endorsements, providing an opportunity for Peloton to gain access to premier guests to
appear in its content
Strategically Defensive Asset: Prevents other big fitness retail or health and wellness
competitors from gaining trophy subscription fitness asset
NTC
BLACKWELLS CAPITAL
NRC
Company Overview¹
Market Cap ($M)
Enterprise Value ($M)
LTM Revenue ($M)
Cash and Short-Term Investments ($M)
Net Debt/LTM EBITDA
Economic Benefits to Nike²
Number of Members:
300 million
Value Creation at Various Member Penetration Rates:
$11.3 billion
$22.6 billion
$56.6 billion
0.5%
1.0%
2.5%
$203,027
$202,217
$46,894
$13,467
NM
(1) Source: CapIQ Pro and Company filings. All data as of April 8, 2022 unless specified otherwise. (2) Source: Retail Dive, "How Nike execs think through its digital ecosystem", November 11, 2021.
Note: Assumes PTON incremental margin of 60%, below managements guidance of 70%, on current subscription prices. Accretion based on 2022E EBITDA multiples per Capital IQ.
61View entire presentation