2016 Deloitte
21%
18%
9% 8% 8%
5% 5% 4% 3% 3%
16%
5,615
4,830
2,393 2,152 2,130
1,292 1,260 1,090
871 813
4,218
0
1,000
2,000
3,000
4,000
5,000
6,000
UK Germany France Italy Spain Netherlands Russia Turkey Poland Switzerland Others
Tota
l rev
enue
s (€
m)
The European fitness market was worth €26.7bn in 2015, with the top 5 countries representing almost two thirds
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 3
Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database
Top 10 European health and fitness markets by revenues (2015) Market size (€m), Share of total market (%)
64% of total European market 20% of total European market
2016 Deloitte
Germany
United Kingdom
France
Italy Spain
Russia
Poland
NetherlandsTurkey
Sw eden
0%
1%
2%
3%
4%
5%
6%
7%
8%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Cha
nge
in m
embe
rshi
p (in
%)
Penetration rate (% of total population)
Germany and the UK strengthened their positions as the largest European markets in terms of membership
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 4
Sources: EuropeActive/Deloitte, DSSV/DHfGP/Deloitte, The Leisure Database
Top 10 European health and fitness markets by membership (2015) Penetration rate (% of total population), Change in membership (%), Total membership (bubble size)
Above-average membership growth Below-average membership growth
Average penetration rate of top 10 markets
Average growth of top 10 markets
Question I: Which of the following factors are correlated with fitness market penetration? 1. General physical activity of the population 2. Real GDP per capita 3. The degree of urbanisation 4. All of the above 5. None of the above
2016 Deloitte
There is a visible correlation between a population’s physical activity and fitness market penetration
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 6
Sources: EuropeActive/Deloitte, EU Eurobarometer 2013
Correlation between physical activity and fitness market penetration (2015) Percentage of population that is exercising or doing sport “With some regularity” or “Regularly” according to the EU Eurobarometer 2013 (%), Penetration rate (%), Total membership (bubble size)
Austria
Belgium
Denmark
Finland
France
Germany
IrelandItaly
Netherlands
Poland
Portgual
Spain
Sw eden
United Kingdom
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
25% 35% 45% 55% 65% 75%
Pene
trat
ion
rate
Physical activity (% of population exercising or doing sport with at least some regularity)
2016 Deloitte
Real GDP per capita and the degree of urbanisation help explain fitness market penetration
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 7
Sources: EuropeActive/Deloitte, Eurostat, The World Bank
Correlation of real GDP per capita and urbanisation with fitness market penetration (2015) Real gross domestic product per capita (in €), Penetration rate (%), Total membership (bubble size)
Urbanisation of 80% or more Urbanisation of less than 80%
Note: The urban population, as stated by The World Bank, refers to people living in urban areas as defined by national statistical offices. It is calculated using World Bank population estimates and urban ratios from the United Nations World Urbanization Prospects.
Austria
Belgium
Denmark
Finland
France
Germany
Ireland
Italy
Netherlands
Norw ay
Poland Portgual
Russia
Spain
Sw eden
Sw itzerland
Turkey
United Kingdom
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Pene
trat
ion
rate
Real GDP per capita (€)
Question II: What correlation is there between market concentration (membership share of top 5 operators) and the average membership fees in a country? 1. Higher concentration = Higher membership fees 2. Higher concentration = Lower membership fees 3. No correlation
2016 Deloitte
Markets with a higher market share of top 5 operators tend to have lower average membership fees
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 9
Sources: EuropeActive/Deloitte, Eurostat
Impact of market concentration on PPP-adjusted monthly membership fees (2015) Market share of top 5 operators in terms of membership (%), PPP-adjusted average monthly membership fees incl. VAT (in €), Total membership (bubble size)
Austria
Belgium
Denmark
Finland
France
Germany
Ireland
ItalyNetherlands Norw ay
Poland
PortgualSpain
Sw eden
Sw itzerland
United Kingdom
0
20
40
60
0% 20% 40% 60% 80%
PPP-
adju
sted
ave
rage
mon
thly
gro
ss m
embe
rshi
p fe
es (€
)
Market share of top 5 operators in terms of membership
2016 Deloitte
In Denmark and Belgium, the leading operators represent more than 50% of all members
Notes: 1) Membership figures for Alex Fitness (Russia), Basic-Fit (Belgium), Fitness World (Denmark) and McFIT/High5 (Germany) based on professional judgement; Sources: EuropeActive/Deloitte, Company information
30% to 49%
15% to 29%
50% and more
Less than 15%
Share of top 5 operators and selected market leaders by membership
Leading operator by membership
Market share
(%)
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 10
18%
55%
11%
8%
27%
6%
10%
53%
2016 Deloitte
The fastest-growing fitness operators in 2015 came largely from the low-cost sector
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 11
Non-franchise operation Fully or partly a franchise operation
Selected top 30 European health and fitness operators by membership (2015) Change in membership (%), Revenue per member per month (€), Total membership (bubble size)
Notes: 1) Revenue figures for clever fit, INJOY and Mrs.Sporty, Change in membership for Basic-Fit as well as revenue and membership figures for FitX, McFIT/High5, SportCity/Fit For Free and Virgin Active based on professional judgement; 2) Migros figures only include Swiss business; 3) Nuffield figures do not include corporate fitness and wellbeing centres Sources: EuropeActive/Deloitte, Company information
clever f it
David Lloyd Leisure
McFIT/High5
Pure Gym
SportCity/Fit For Free
Xercise4Less
Fitness First
Health & Fitness Nordic
Actic
Nuffield Health
FitX
INJOY
Keep CoolKieser Training L'Orange Bleue
Migros
Mrs.Sporty
Russian Fitness Group
The Gym Group
Virgin Active
Basic-Fit
0
25
50
75
100
-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Reve
nue
per m
embe
r per
mon
th (€
)
Change in membership (in %)
2016 Deloitte
After a total of 24 fitness transactions from 2011 to 2013, 19 M&A activities were recorded in both 2014 and 2015
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 12
Change in ownership by investor type (2015)
Sources: Mergermarket, Bloomberg, Company information, Deloitte analysis
Strategic investors
Financial investors
Founders / Private
shareholders Private
shareholders
Strategic investors
Financial investors
2016 Deloitte
The five leading commercial equipment manufacturers accounted for about 72% of the global market in 2015
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 13
Leading manufacturers’ share of global commercial fitness equipment market (in %)
Sources: EuropeActive/Deloitte, Company information
Estimated global commercial (B2B) market
2016 Deloitte
Technological development is one of the main forces shaping the health and fitness industry in the future
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 14
Past and future growth of digital technologies and their role in the fitness industry
Source: Morgan Stanley - The ‘Internet of Things’ Is Now 2014, Statista – Smartphone Penetration 2015, GSMA - The Mobile Economy 2014, HIS – NFC Enabled Phones 2014, Forbes, GfK, The Federal Reserve, Deloitte analysis
Mobile apps
Health & fitness trackers
Online fitness
Shift in payments
Digital technology in fitness
417,300 Registered online fitness
users in Germany in 2015
8.2 million Forecast unit sales in Europe in 2015
28% US smartphone users making
online purchases in 2014
80 million Registered users of MyFitnessPal app
500 M
2000
10 B
2010
70 B
2020 2010 2020
551million >3billion
2000 2020
500 million
2010
~2.8 billion
>7 billion
28% CAGR 18% CAGR 14% CAGR
Total Connected Devices Smartphone Users Internet Users (units)
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/de/UeberUns for a more detailed description of DTTL and its member firms.
Deloitte provides audit, tax, financial advisory and consulting services to public and private clients spanning multiple industries; legal advisory services in Germany are provided by Deloitte Legal. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte’s more than 225,000 professionals are committed to making an impact that matters.
2016 Deloitte
A major macro-economic trend to consider is the increasing age of the European population
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 18
Division of age groups in % of total population (EU-27), 2011 vs. 2060
Sources: Eurostat, Deloitte analysis
Mean age group
Mean age group
6 4 2 0 2 4 6
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
% of total population
Age
Male Female
Mean age groupMean age group
5 3 1 1 3 5
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
% of total population
Age
Male Female
2016 Deloitte
Detailed research led to a comprehensive picture of the European health and fitness market
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 19
Methodology
What we have done And what we achieved
Interviews with selected industry experts
Questionnaire for major chain operators
Online questionnaire in twelve different languages for individual club operators
General research work
Identification of individual and chain operators in 18 countries
Educated assessment of industry’s state and development
Detailed information on major European operators
Data of more than 1,000 individual clubs in 13 countries
Insights in existing market reports, data on equipment industry, M&A activity
Detailed club databases on national level
2016 Deloitte
Leading Operator Rankings/Profiles
Recent Mergers & Acquisitions
Perspectives on the Market
Corporate Wellbeing
Content (1/2)
The EuropeActive/Deloitte market report examines the European fitness industry from various perspectives
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 20
New
2016 Deloitte
Innovation in the Fitness Industry
Snapshot of the Equipment
Industry Eurobarometer Top Market
Overview/Profiles
Content (2/2)
New
The EuropeActive/Deloitte market report examines the European fitness industry from various perspectives
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 21
2016 Deloitte
Specialised product offerings and digitalisation are two of the main trends shaping the fitness industry
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 22
Trends and drivers of the fitness industry
Source: Deloitte analysis
Product offerings • Polarisation of market segments • Special interest concepts • Flexible membership concepts
Macro-economic development • National economy • Demographic change • Change in values
Digitalisation & Media • Online fitness clubs • Fitness apps • Social media
Management challenges • Employee management • Franchise • Revenue and cost management
Stakeholders • Investors • Health insurers & politics • Other interest groups
Fitness industry
2016 Deloitte
Most European club operators expect to grow in 2016; Polish clubs are again the most optimistic Expected increase in revenues for 2016 (in %)
Source: EuropeActive/Deloitte
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 23
41.7%
33.3%36.1%
44.4%45.2%41.0%
57.1%
50.0%55.1%
60.7%
40.9%
54.5%
33.3%
4.2%15.7%
14.8%
8.9%12.9%
17.9%
5.7%15.4%
12.2%
10.7%
32.6%
22.7%
44.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
BelgiumFranceRussiaItalyAustriaFinlandIrelandTurkeyNetherlandsSpainPortugalSwedenPoland
Increase 2.5-7.5% Increase >7.5%
2016 Deloitte
After a total of 24 fitness transactions from 2011 to 2013, 19 activities were recorded in both 2014 and 2015
EuropeActive | Deloitte - European Health & Fitness Market Report 2016 24
Selected transactions in the health and fitness industry (2015)
Sources: Mergermarket, Bloomberg, Company information, Deloitte analysis
# Date Company Country Seller Bidder1 Jan 2015 Condizione PL Patrycja Bartnicka-Irndorfer Fitness World
2 Feb 2015 MeridianSpa DE Private investor(s) AFINUM
3 Feb 2015 Form Developpement FR Philippe Ducos Ekkio Capital
4 Mar 2015 Total Fitness UK Co-op Bank / Barclays Ventures NorthEdge Capital / RooGreen Ventures
5 Apr 2015 Virgin Active UK CVC Capital Partners Brait Private Equity
6 May 2015 Fitness World DK Henrik Rossing FSN Capital
7 May 2015 LA Fitness UK Royal Bank of Scotland Pure Gym
8 May 2015 basefit.ch CH Stefan Lüben Verium AG
9 Jun 2015 Aspria DE Ares Management Cofinimmo Group
10 Jul 2015 easyFit CH Private investor(s) basefit.ch
11 Jul 2015 FITmade CH Private investor(s) basefit.ch
12 Nov 2015 Viva Gym ES Magenta Partners Bridges Ventures
13 Nov 2015 The Gym Group UK Phoenix Equity Partners / Bridges Ventures IPO
14 Nov 2015 Pure Gym UK Pure Gym DW Fitness
15 Nov 2015 L’Appart Fitness FR Patrick Mazerot L’Appart Fitness
16 Dec 2015 1Rebel UK 1Rebel Crow dfunding
17 Dec 2015 Physic Club CH Christian Matthey Let's Go Fitness
18 Dec 2015 HealthCity FR 3i Group Ekkio Capital
19 Dec 2015 Ingesport / Go Fit ES Corpfin Capital Mutua Madrileña