DISRUPTIVE BUSINESS UPENDING TRADITIONAL HEALTH & FITNESS MODELS Peloton’s disruptive business model fundamentally Global Digital Disruption improves the fitness experience across two key variables: Convenience and Cost Disrupted Disruptor ▪ Convenience Movies ~40,000 local and regional theater operators – Unlimited fitness classes anytime, anywhere, on any device ~13,000 local and regional – Nearly 1,000 new classes per month: cycling, Video Games dedicated arcades running, strength training, bootcamp, stretching, yoga and meditation ~3,300 independent ▪ Cost Music record stores – Entire household for $39.00 per month compares favorably to ~$300 per month per person for Books ~38,500 local and boutique fitness classes national bookstores – Financing program for bikes and treadmills unlocks ~36,500 health clubs and demand from cohort of gym goers that would Fitness boutique fitness operators otherwise be unable to afford the offering Source: Company website and Company filings. 12