Business Unit Strategy HealthFitness

HFIT Current Strategy

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

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

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

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

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

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

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

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

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