Javier Gomez-Cirlos 11/18/13

Elite Fitness + Mobile Gaming

Mobile Fitness Application

Virtual Group Training • Compare Performance

• Win points, Improve rank

Freemium Model • 2 wks free

• 15 wk program - $10

All Bodyweight Exercises • Home, Park or Gym

Concept

Olympic/Ironman Level

Structured Training Gamified Exercise

Circuits

+ +

Share/Compete

Friends on Facebook

+

Nutritional

Guidance

15 Week Initial Program • Longer Period = Significant Results

4 Workouts Per Week • Based on User’s Ability

Nutritional Guidance • Build Muscle/Lose Fat

Concept (cont’d)

3 Key Factors to Bootcampp’s Efficacy

Guidance a. Identifies your fitness goal

b. Charts a path to achieve that goal.

c. Elite routines developed by an Olympic/Ironman trainer.

Motivation a. Activities are simplified to develop mastery with gradual challenge

b. Immediate feedback of performance relative to peer group.

Affordability

a. Anyone with a smartphone can afford it.

SUCCESS

SIZE

Fitness and Diet Mobile apps - Global installations of sports and fitness mobile apps are expected to rise from 156M in 2012 to 248M in 20171.

Health Clubs/Personal Trainers2 - US Health Clubs: 30,500 health clubs, 51.3M members, $21.8B revenues. World Health Clubs: 153,000 health clubs, 132M members, $76 B revenues.

Personal Trainers*- US: Nearly 251k personal trainers3, $7-$9B revenues4,5

Workout DVDs - $265M revenues 20126, roughly 2.7M units

Diet/Weight-Loss Centers - US $3.4B7

Online Dieting7 - US: $1.1B total. Weightwatchers.com 1.7M paid subscribers $504M

DIY Dieters7 - 82% of all dieters apply some combination of the following: diet websites, OTC diet pills, meal replacements/supplements, and diet books.

Sources:

1. IMS Research - Sports and Fitness App Market to Expand by More Than 60 Percent in Five Years. (July 2013)

2. IHRSA.org - http://www.ihrsa.org/industry-research/ 3. Bureau of Labor Statistics - Fitness Trainers and Instructors (April 2012) 4. Median income x Number of Trainers 5. IBISworld - http://www.ibisworld.com/industry/personal-trainers.html 6. IBISworld - http://www.ibisworld.com/industry/fitness-dvd-production.html 7. MarketData Enterprises - http://www.prweb.com/releases/2013/4/prweb10629316.htm * Overlap between personal training market and health club market

SUCCESS

UNCERTAINTY Sources of uncertainty affecting the successful launch and growth of Bootcampp

Market: Discretionary spend product in a crowded market. This is a complimentary product to existing DIY fitness programs. However, video and online dieting spend trends are highly positive, currently growing at 13% and 8%, respectively. Mobile programs growing exponentially, but the long-term growth trend is unknown.

Company: Ability to design, produce and market an mobile/training product, secure distribution accounts, successfully launch and get traction is proven.

Consumer: Acceptability of the product, positioning, price, image and advertising are yet to be tested in the market. The female consumer, part of the target base, is typically choosy and fickle, but twice as likely to download mobile fitness apps1

Expansion: Breaking into other markets (national and global) to achieve scale and reduce costs as a new entrant and niche player will be difficult.

Competitor: Response from direct competitors, Nike Fuel, TRX, P90X, Fitstar, is unknown. While price competition and geographic competition are unlikely, competitors may offer accessories and/or copy the general Bootcampp model.

Regulatory: Not currently subject to FDA scrutiny because it does not diagnose or treat a medical condition, but this regulation may change.

1. Euromonitor Int’l - The Growing Use of Mobile Health and Fitness Apps (August, 2013)

SUCCESS

CUSTOMER • Male/Female 18-30 yrs old • Smartphone user • Enjoys games • Has tried several fitness regimens with poor to moderate results Key motivation and drivers:

1. Convenience & Availability 2. Price 3. Brand & Quality 4. Level of urgency

SUCCESS

COMPETITION The mobile fitness space is a fragmented with many players and substantial competition, but no clear leaders

2. Exercise Variety/Technique: • Fitness Buddy - 1,700 exercises ($2) • Nike Training Club - (Free) • TRX Force ($40) • P90X Mobile ($55)

1. Motivation: (Games, Social) • Zombies, Run! ($4) • Running for fitness - GPS tracker ($4) • Runkeeper - GPS Tracker (Free) • Couch 2 5k ($5)

• Fitocracy (Free) • Fitstar ($20+) • Nike Training Club (Free) • Gympact (Free)

3. Activity Tracker: • Runkeeper (Free) • Couch 2 5k (Free) • Moves ($1)

4. Diet/Weight Control: • Weight Watchers Mobile (Free) • Livestrong (Free) • Lose it (Free) • Livestrong (Free)

• Fitted Lifts (Free)

• MyFitnessPal (Free)

Competitor Landscape (1-3 Month Intense Programs)

Pri

ce

Program Technology

Offline Mobile

Crossfit ($600-700)

Fre

e

$2

00

-40

0

$ 4

00

+

$ 5

0 -

20

0

$5

-$5

0

Insanity, P90X2,

T25 ($125)

DVD

Personal

Trainers

($200-$500)

Gillian Michaels ($10)

Zuzka ZCut ($30)

Online Video

Group Training

($200-$400)

Youtube Video

Fitness blender

Live Exercise ($10-15)

P90X ($55) TRX ($40)

Fitstar ($40-80)

Bootcampp ($5-10)

SUCCESS

ENTRY BARRIERS • The industry has low entry barriers to entry: websites & offline group training is easy to coordinate • There are relatively low setup costs. However, large campaigns with traction have likely spent $1M-

$35M

SUPPLIERS/DISTRIBUTION The process of offline distribution may lie in partnerships with budget gyms and universities • Budget gyms - it may be relatively easy to sell as budget gyms are struggling to find cost effective

classes/programs for their users. However, large chains do not exist. • Universities - unknown interest in partnerships with 3rd party fitness provider notwithstanding the

provider’s track record.

SUBSTITUTES There are currently hundreds if not thousands of substitutes for fitness, in general. Most users apply a combination of online research, old fitness tips from friends, school or previous personal trainers, and dieting books. However, there are no substitutes in gamified, mobile high-intensity interval training below $40 : • Offline workout activities: basketball, swimming, cycling, jogging, weights etc.

• Structured offline programs: Crossfit, local group training outdoors/indoors, personal trainers

• Other structured DVD/video programs: Insanity, T25, P90X2, Insane Home Fat Loss

• Other gamified mobile fitness apps: Runkeeper, Gympact, Fitocracy

• Other structured mobile fitness apps: FitStar, P90X, NikeTraining Apps

Management Team

CEO - Javier Gomez-Cirlos is an entrepreneur, founder of OfficeFab Vietnam where he was a managing director. During his tenure, OfficeFab Vietnam grew from a 1-person start up to 50 employees, acquiring over 1,700 corporate clients, including: Ernst & Young, Dell and Coca Cola Vietnam. Previously, Javier also worked in a mobile-focused start-up with a business model similar to current players, Lyft and Uber. Javier holds an MBA from Chicago Booth with concentrations in entrepreneurship and finance, as well as a BBA, Finance from Loyola Marymount University.

Product Design & Testing - Raul Zaristky, PhD M.F.A is an expert in the field of learning program development in-class and online. He headed multi-million research and implementation programs at the National Center for Super Computer Applications, at the National Science Foundation, for large Agencies, Fortune 100 Corporations and projects for the CIA. Raul currently serves as a visiting scholar at the University of Chicago. Focusing on refining creative methods and developing new media forms and rapid benchmarking methods which were highly effective at on-boarding of Intelligence staff in large CIA projects. He applies the latest developments from AI, Behavioral Science and Learning Research. Raul holds a PhD from the University of Illinois, Urbana-Champagne in Educational Research, a Master Degree in Learning Sciences from Northwestern, and an MFA in Digital Media from the school of the Art Institute at Chicago.

The founding team of Bootcampp has experience with mobile/web product development, video training production/refinement, online/offline marketing, and elite fitness training. We seek growth in visual game design, and social media marketing,

Athletic Training - Riccardo Marini has 21 years of athletic training experience. Riccardo has personally coached and trained more than 100 triathletes for various Ironman competitions, including 8-month turnaround competitors from sedentary lifestyles. Additionally, he has led training activities for many Olympic athletes in the Olympic village during the 2008 Beijing Olympic Games and 2012 London Olympic Games. Furthermore, Riccardo is a master trainer with Technogym, a globally recognized leader in fitness programs and equipment with degrees in Sports Science and Physical Training from Urbino University, Italy.

Key Drivers of Profitability

INITIAL COSTS

REVENUE

LEVERS

COST LEVERS

FINANCIAL

PERFORMANCE

1

2

3

4

Website

Development

Product

Development

Price Conversion

Rates

Marketing

Research

Film Development / Online Ads / Grassroots Campaign /

Social Media Advertising

Product

Mix

Advertising SG&A

Unit Contribution

Returning

Users

Promos /

Discounts

Wireframes

Wireframes

Wireframes