Blackwells Capital Activist Presentation Deck slide image

Blackwells Capital Activist Presentation Deck

■ Apple becomes the category leader in digital health & wellness Immediate ability to bundle with 100 million Apple watch users Gains significant customer data edge to use for applicability across the Apple ecosystem ▪ Through its preexisting health, wellness, content and lifestyle segments, Apple has a robust opportunity to cross-sell and bundle content offerings such as: ■ ■ ■ POTENTIAL STRATEGIC ACQUIRERS APPLE Apple would position itself as the global leader in digital health & wellness Apple Fitness+: Full integration of all Apple's preexisting health features and classes Apple Music: Integrated apple music to create workout playlist and content (i.e., sort music by BPM or workout time) Apple TV+: New exercise content combined with ability to watch Apple TV+ content Leading brand and high quality of Peloton offering fits well with Apple's ethos of premium products BW Strategically Defensive Asset: Prevents other big tech / health and wellness competitors from gaining a trophy subscription fitness asset *Fitness+ Music BLACKWELLS CAPITAL WATCH tv+ Company Overview¹ Market Cap ($M) Enterprise Value ($M) LTM Revenue ($M) Cash and Short-Term Investments ($M) Net Debt/LTM EBITDA Economic Benefits to Apple² Number of Users: $2,775,774 $2,834,659 $378,323 $63,913 0.46x (1) Source: CapIQ Pro and Company filings. All data as of April 8, 2022 unless specified otherwise. (2) Source: Company filings and publicly available data. 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. 100 million Value Creation at Various User Penetration Rates: $15.5 billion 2.5% 5.0% $31.0 billion 10.0% $62.1 billion 53
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