The Gym Group (GYM) ESG Update summary

Foundational Purpose and ESG Integration

• ESG is embedded in the company's DNA, aligning commercial success with positive societal impact.

• The business model focuses on affordable, accessible fitness, driving both social value and profitability.

• Five ESG focus areas: health and well-being, equality/diversity/inclusion, good jobs, data security, and environmental responsibility.

Business Overview and Growth Strategy

• Operates 237 gyms across the UK, serving over 900,000 members with a scalable, low-cost, tech-enabled model; average revenue per member per month is £19.50.

• Member visits increased 10% year-on-year, with 80% app usage and high digital engagement.

• Growth drivers include pricing, new customer acquisition, retention, and opening new sites, targeting 50 new gyms and 30% ROIC over three years.

• Free cash flow generation underpins expansion and reinvestment, with £27 million delivered in 2023.

• Growth plan centers on driving like-for-like revenue, accelerating rollout of quality sites, and breaking down barriers to fitness for all.

ESG Strategy, Achievements, and Social Value

• ESG priorities include good health and wellbeing, equality, diversity and inclusion, environmental responsibility, and data security.

• Achieved 'AAA' MSCI ESG rating, first carbon neutral UK gym chain, and ISO 45001 certification.

• Generated £890 million in social value in 2023, with significant contributions to health, mental wellbeing, and community development.

• Partnerships with NHS Charities Together and sector-leading organizations to measure and enhance social value.

• Focus on increasing member visits, supporting underserved communities, and quantifying social value using the Sheffield Hallam Social Value Model.