PELOTON’S UNDERPERFORMANCE IS DUE TO MISMANAGEMENT Peloton’s escalating problems stem from poor decisions and misaligned incentives 1 Lack of Qualification: CEO John Foley is right to be insecure about his capabilities and qualifications 2 Poor Decision Making: Mr. Foley has made a series of poor decisions relating to product, pricing, demand, safety and capital allocation 3 Lack of Financial Discipline: Under Mr. Foley’s management, the Company suffers from a lack of financial discipline and ineffective internal controls 4 Misalignment of Interests: Mr. Foley’s interests and incentives are misaligned with employees and shareholders 5 Loss of Credibility: Mr. Foley has lost credibility with discontent employees, shareholders and analysts 24