Blackwells Capital Activist Presentation Deck slide image

Blackwells Capital Activist Presentation Deck

BW 1 EXECUTIVE SUMMARY PELOTON'S CURRENT PLAN IS INADEQUATE Insiders Remain in Control Despite Value Destruction Despite having destroyed more than $40 billion in shareholder value while having only a modest economic interest in the Company, a close-knit group of insiders including John Foley and Director Jay Hoag effectively control Peloton Blackwells believes Peloton's governance limits accountability to shareholders BLACKWELLS CAPITAL 2 Peloton Continues to Make Only Incremental Changes In February 2022, Peloton announced a "significant transformation" of its operating model to much fanfare. To date, these changes have consisted of minor changes to the management team, a cost reduction plan that lacks transparency and an underwhelming product launch In our view, Peloton's changes are not nearly enough to address its challenges 3 Company Remains Independent Immediately after his appointment as CEO, Barry McCarthy asserted that a sale of Peloton was unlikely in the "foreseeable future," despite the Company's well-documented challenges Blackwells believes Peloton will continue to face challenges as a standalone company in a niche market, and that a sale is the best outcome for shareholders Blackwells believes Peloton's claimed transformation is largely illusory and requires work beyond what the current Peloton team is capable of doing 9
View entire presentation