Nautilus, Inc. Investor Day Outlines Long-Term Strategic Plan - Seite 2

Hardware and Innovation Heritage

The Company’s brands and long-standing track record of innovation has allowed the Company to be a leader in the home fitness market for 35 years. Innovation is in the Company’s DNA with over 300 patents and a history of delivering high quality, award-winning modalities. Nautilus has had success with products across all modalities of fitness and going forward every product launched will be connected to the Company’s JRNY ecosystem. In today’s environment of bringing the entire gym and personal trainer into one’s home, Nautilus is uniquely positioned to offer the full experience.

Broad Distribution

Over many years, the Company has built an incredible network of retail partners, which, combined with its Direct-to-Consumer roots, gives Nautilus an omni-channel experience. The Company leverages an expanding stable of retail partnerships, both in brick and mortar stores and online, and augments these further with international distributors. In the US and Canada, the Company partners with some of the largest players in the industry, and internationally, partners with over 40 distributors in 80+ countries. Nautilus makes it easy for consumers to shop its brands, offering choice in when, where and how they purchase.

During the Investor Day, management outlined the five strategic pillars of the Company’s North Star strategy:

Adopt a Consumer First Mindset

Nautilus has been successful in developing innovative, award-winning products and will leverage that strength in order to become consumer-obsessed in everything it does. Adopting a consumer first mindset means looking at how Nautilus helps its consumers across every aspect of their journey. The Company has restructured its product development approach to gather consumer input at the very beginning of the process and started testing its marketing messaging early in the development cycle to ensure its communications are driving an emotional connection with the consumer. The Company has moved from traditional product management to category management, whereby category managers own a portfolio and a P&L, find white spaces, and advocate for projects that drive customer success. Nautilus will focus its product portfolio in the mid and premium tiers of the category and going forward the brand portfolio will be Bowflex, Schwinn and JRNY. Bowflex is the Company’s premium connected brand that offers a broad assortment of strength and cardio products; Schwinn is the specialty brand, singularly focused on mid-priced bikes; and JRNY is the ingredient brand that offers variety and makes both Bowflex and Schwinn better and stronger. Importantly, this refined brand portfolio allows Nautilus to invest appropriately to accelerate each brand’s growth.