1. Business Unit Strategy
HealthFitness

2. HFIT Current Strategy

3. Arenas Arenas Staging & Pacing Economic Logic Vehicles Differentiators
Customers
Employer or “employer-like”
5,000 + lives
Has strong wellness philosophy
Want highly integrated and /or customized solutions
Products
Fitness Center Management
Population Health Management
HRA, biometric screenings, platform, advising, coaching and on-site programs
Where
United States
Arenas
Staging & Pacing
Economic Logic
Vehicles
Differentiators

4. Arenas Where we are active…
“Employer-Like” customers
Able to provide eligibility
Pays fees; no individual collection
Has access to and can control participants for engagement/enrollment
Strong wellness philosophy
Understands long term nature of wellness
Has realistic goals set
Investing both dollars and resources to match expectations
Highly integrated/customized solutions
Robust incentive design
On-site programs in culture
Portal content integrated into client environment

5. Arenas Where we aren’t…
Selling one off solutions
Managing non-core staff; nurses, physical therapists, dieticians
Miscellaneous call center services
Platform only solutions
Selling to non-Employers (or not Employer-Like) or employers that are too small
Selling to customers who don’t have a strong wellness philosophy
Employer wants a low cost solution or limited impact on participants
Employer has unrealistic expectations on what can be achieved for minimal spend.
Employer wants to cut corners; minimize resources or minimize participation.
Our solution is outside of the client’s culture
Unfocused or disconnected incentive program
Low level of support of or participation in on-site programs
Customer leadership does not support or understand the goals of the wellness program

6. Vehicles Arenas Staging & Pacing Economic Logic Vehicles
Distribution; consultant and direct
Respond to RFPs
Leverage existing customers for incremental growth
Private labeling (health plans)
New products
Core: build or buy
Non-core: borrow
Arenas
Staging & Pacing
Economic Logic
Vehicles
Differentiators

7. Vehicle Distribution Leverage existing customers for growth
Companies putting out a request for proposal show an understanding of wellness and a commitment to a wellness program
Sold through consultants (contracted/paid by customers)
Some direct business
Leverage existing customers for growth
Sell new products to existing customers
Private Labeling
Health plans (employer-like customers) that use their brand not ours
New products
Core
Build (if capability exists)
Buy (if capability doesn’t exist)
Expertise, infrastructure; systems, processes, controls and market credibility plus existing customer base
Non-Core
Can borrow for non-core services that are not integrated since control of service delivery not as important

8. Differentiators Arenas Staging & Pacing Economic Logic Vehicles
Scalable customization and flexibility
Integration into client’s culture (on-site staff key enabler)
Highly integrated solution
Execution excellence

9. Differentiators Customization & Flexibility
BUCA still pushing “one size fits all” approach
Some competitors lack expertise to implement customized solution
Integration into customer’s culture
Understanding their culture
Highly integrated solution
Participant experience from multiple touch points (i.e. flow from biometric screening to HRA to coaching)
Execution excellence
Deliver consistent execution across all phases of service
Implementation, data management, reporting, screening, coaching

10. Economic Logic Arenas Staging & Pacing Economic Logic Vehicles
Customer intimacy/retention
Long term relationship
Level of trust moves beyond traditional vendor/customer
Lower overall acquisition cost
Integrated experience
Multiple products/services
Encourage participation and engagement
Produces higher margin
Solution highly aligned with client’s culture
Integration beyond HFIT services
Arenas
Staging & Pacing
Economic Logic
Vehicles
Differentiators

11. Staging and Pacing Arenas Staging & Pacing Economic Logic Vehicles
Differentiators
2013 – early 2014: Stabilize foundation (Platform and scale)
Mid-2014: Remove sales constraints
Mid-2014: Launch middle market product
2015: Develop new integration product offerings for large group market