Slide 1: Q4 2024 Interim Report October-December 2024
Q4 2024 INTERIM REPORT OCTOBER-DECEMBER 2024 CEO SONDRE GRAVIR CFO CECILIE ELDE INVESTOR RELATIONS: STINE. KLUND@SATS.NO +4798 699259
Slide 2: Clubs and members by country and city
117 clubs and 332 000 members 95 clubs and 248 000 members 2 31 clubs and 71 000 members 29 clubs and 82 000 members 4 4 5 11 22 66 Greater Oslo Greater Helsinki 10 3 10 73 11 Greater Stockholm 13 2 7 29 Greater Copenhagen 1) Before IFRS 16 and EO items 2 2
Slide 3: Q4 2024 highlights
Our members are working out more than ever before, with the all countries following the positive development seen in Norway, after replicating the Norwegian formula with increased investments in group training capacity Achieved robust financial growth, with a continued positive trajectory across all
Slide 4: Launching Reformer product bundle
• Launching a bundle of Reformer products in March (Reformer Pilates, Reformer Strength, Reformer HIIT) • Taking a dominating fitness trend to the mass market – global and local trend reports focus on the new wave for Pilates and Reformer classes • Meeting the second largest boutique trend (in addit
Slide 5: Group training investments rolled out across markets
• Have through 2023 and the first half of 2024 piloted added investments into the group training product in Norway, with successful results • The replication of the Norwegian pilot into the other markets are showing promising results, and will thus be rolled out further 5 5
Slide 6: Financial Review Q4 2024
FINANCIAL REVIEW Q4 2024
Slide 7: 1) Before IFRS 16 2) Net debt to EBITDA before IFRS 16
1) Before IFRS 16 2) Net debt to EBITDA before IFRS 16 7 7
Slide 8: Member development in the quarter
• Strong close of the year, adding 5 000 members in the quarter • Stable member development compared to last year despite operating four fewer clubs • Members per sqm improved by 3%, driven by portfolio optimization and space utilization efforts 8 8
Slide 9: Yearly price adjustments
• Product development is strengthening our brand and driving member engagement, Yearly price adjustments making add-on products, such as group training, more attractive • List prices for memberships and personal training adjusted 3 December 2024 • Avg. increase in line with inflation across the memb
Slide 10: Revenue growth and membership yield
• Growth in membership yield, following price initiatives and increased attractiveness of the group training product • Total revenues lifted by 7% y/y, as a stable member development is combined with yield increases above inflation • Slight increase in revenues from personal training and retail 10 1
Slide 11: Club operating costs
• Increase in club operating cost of 5%, driven by inflation • Some additional investments in the product offering, mainly related to adding more group training classes • Hedged the electricity price for ∼50% of the total estimated consumption from Q4 2024 until end 2026 to reduce risk • Cost base e
Slide 12: Strong EBITDA reflecting robust profitability
STRONG EBITDA REFLECTING ROBUST PROFITABILITY REPORTED EBITDA EBITDA BEFORE IFRS 16 MNOK MNOK Mi cerTDA [EBITDA BEFORE IFRS 16 — EBITDA BEFORE IFRS 16 MARGIN — EBITDAMARGIN EBIT BEFORE IFRS 16 MNOK — EBIT BEFORE IFRS 16 MARGIN ( EBIT BEFORE IFRS 16 13% 10% 5% 10: >a G a 474 425 +87% pe 125 175 ; a ’
Slide 13: Club openings and capex investments
Helsinki Q1 2025 • One club closure in the quarter Oslo (Fresh Fitness) Q1 2025 • Actively scouting locations in key Larvik (Fresh Fitness) Q3 2025 clusters and major Nordic cities, Oslo 2026 targeting a run-rate of 8-12 new clubs per year Gothenburg Q4 2024 • Investment levels returned to target le
Slide 14: Free cash flow
• Generated strong free cash flow of NOK 153 million in Q4 and NOK 407 million for the full year 2024 • Positive working capital effects following the growing business with prepayment of memberships, but maintenance capex skewed towards the end of Q4, results in some capex cash carryover to Q1 • The
Slide 15: Debt down payment and leverage
• The strong cash flow enabled further down payment of NOK 103 million on the RCF • Have continued the deleveraging journey during the quarter • Remain committed to keep leverage in the lower end of the communicated target range of 1.5x-2.0x net debt to EBITDA • Have thus initiated the first share b
Slide 16: Full-year 2024 summary
FULL-YEAR 2024 SUMMARY WORKOUTS (MILLION) MEMBERS (000) REVENUE (MNOK) TOTAL OPEX (MNOK) 444 465 731 733 ea 5064 oe, 4120 RES 2023 2024 2023 2024 2023 2024 2023 2024 EBITDA BEFORE IFRS 16 EBIT BEFORE IFRS 16 FREE CASH FLOW (MNOK) LEVERAGE RATIO (MNOK) (MNOK) 58% pe. 23 738 525 407 ae 377 299 14 2023
Slide 17: Outlook
OUTLOOK
Slide 18: Share buyback program
This is the first share buyback program in 2025. The company aims to distribute at least 50% of annual net profit as a combination of share buybacks and semi-annual dividends 17 February until the last trading day before the AGM (25 April) and the date the maximum consideration under the buyback pro
Slide 19: Outlook and guidance for 2025
The strong financial delivery in 2024 was driven by investments in improved product offering, combined with yield initiatives growing member revenues, and strong focus on operational execution and efficiency We will maintain a sharp focus on these areas also in 2025, which will result in further str
Slide 20: Save the date: Capital Markets Day May 7, 2025
SAVE THE DATE: SATS CAPITAL MARKETS DAY ON MAY 7, 2025 AY-TAY
Slide 21: Appendix
APPENDIX
Slide 22: Forward-looking statements
This report includes forward-looking statements which are based on our current expectations and projections about future events. Statements herein, other than statements of historical facts, regarding future events or prospects, are forward-looking statements. All such statements are subject to inhe
Slide 23: Norway
NORWAY COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 “000 NOK/MONTH MNOK MNOK 1 MEMBERSHIP YIELD [lll MEMBERSHIP REVENUES WM OTHER YIELD I OTHER REVENUES 48%, +28%, 589 526 331 394 © 529-582 584 555 543 165 tor 100 129 Q4 2023 Q12024 Q22024 Q32024 042024
Slide 24: Sweden
SWEDEN COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 ‘000 NOK/MONTH MNOK MNOK (MEMBERSHIP YIELD [MEMBERSHIP REVENUES 249° 248 = 24g 246248 Q4 2023 Q12024 Q22024 Q32024 042024 WM OTHER YIELD 46% (+6% CURR. ADJ) 564 114 117 I OTHER REVENUES 45% (+5% CURR. A
Slide 25: Finland
FI LAND COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 “000 NOK/MONTH MNOK MNOK [M MEMBERSHIP YIELD [MM MEMBERSHIP REVENUES 7 72 70 «70 7 Q4 2023 Q12024 Q22024 Q32024 042024 I oner viELD 19% (#8% CURR. ADJ.) 570 aw 105 Il OTHER REVENUES 19% (+8% CURR. ADJ.
Slide 26: Denmark
DENMARK COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE ARPM AND YIELD TOTAL REVENUES IMPACT OF IFRS 16 ‘000 NOK/MONTH MNOK MNOK (MEMBERSHIP YIELD [MEMBERSHIP REVENUES | | | : Q4 2023 Q12024 Q22024 Q32024 042024 WM OTHER YIELD +10% (+9% CURR. ADJ.) 551 82 I OTHER REVENUES +7% (+6% CURR. ADJ.) 140 21 21 +
Slide 27: Key figures
Amounts in NOK million Number of clubs, EOP 272 276 Outgoing member base ('000s) 733 731 Average number of members per club 2 696 2 649 ARPM (NOK) 598 559 Yield (NOK) 493 458 Reported EBITDA (MNOK) 474 425 EBITDA before impact of IFRS 16 (MNOK) 175 128 EBITDA before impact of IFRS 16 margin 13 % 10
Slide 28: IFRS 16 impact on balance sheet and income statement
Property, plant and equipment 792 0 792 Right-of use assets 4 657 4 657 0 Deferred tax assets 185 76 110 Prepaid expenses and accrued income 237 -100 336 Total assets 9 336 4 633 4 703 E qui ty 1 345 -378 1 723 Non-current lease liability 4 090 4 090 0 Current lease liability 959 959 0 Other current
Slide 29: Definitions of alternative performance measures
Average number of members Outgoing member base divided by outgoing number of Consists of group services such as commercial per club clubs Group overhead functions, IT, finance and administration Average revenue per member Calculated as monthly total revenue divided by the Net debt divided by last tw
Slide 30: EBITDA, capex and working capital reconciliation
Profit before tax Depreciation, amortization and impairment EBITDA before impact of IFRS16 Net financial items Installments on lease liabilities Interests on lease liabilities Maintenance capex Purchase of property, plant and equipment (contains both maintenance capex and expansion capex) Change in
Slide 31: SATS
SATS