4 MISALIGNMENT OF INTERESTS: MR. FOLEY’S WIFE RUNS ONE OF THE BUSINESSES …[W]e don’t really need to make money on our apparel business, because it’s not our core business. ¹ - John Foley, CEO Peloton ▪ John Foley put his wife in charge Performance Has Suffered of the Peloton apparel business ▪ Recent results in the apparel line “Momentum in the [Apparel] unit, which is run by have been disappointing and it Chief Executive John Foley’s wife, seems to be appears internal projections have fading heading into the next year...”² been cut ▪ It is unclear if Ms. Foley is the best person to lead this business, or is “[Apparel] penetration into our member base just the person closest to Mr. Foley is so low. How do we drive more revenue from our existing member base?”² “[I]t’s just... the dynamic is a little ▪ Shareholders deserve leadership - Tim Shannehan, Global Chief Sales Officer awkward with Jill and John.” from the best available managers, - Tim Shannehan, Global Chief not nepotism Sales Officer2 1. Source: Goldman Sachs Technology & Internet Virtual Conference (February 11, 2021) transcript. 34 2. Source: “Peloton internal docs show it slashed 2022 sales goals for apparel unit after segment revenue more than doubled last year.” CNBC, January 31, 2022.