Slide 1: Q2 2021 Interim Report April - June 2021
Q2 2021 INTERIM REPORT APRIL - JUNE 2021 CEO SONDRE GRAVIR CFO CECILIE ELDE IR: STINE.KLUND@SATS.NO, +47 98 69 92 59 SATS
Slide 2: All clubs re-opened, and we have started the journey to get back on track
• All clubs re-opened, and we have started the journey to get back on track • A wide range of members are again eager to come back – visit development on par with last re-opening, despite more restrictions • Paying member base recovering, as the member base increases, and the freeze rate falls • SAT
Slide 3: Market positions in Oslo, Helsinki, Stockholm and Copenhagen
#1 position1 with 110 clubs and 276 000 members (-1%2) #1 position1 with 84 clubs and 207 000 members (-6%2) 2 #1 position1 with 30 clubs and 58 000 members (-4%2) #2 position1 with 30 clubs and 71 000 members (-22%2) 4 1 3 1 4 10 22 65 Greater Oslo 10 3 Greater Helsinki 5 67 6 4 Greater Stockholm 1
Slide 4: Strong recovery after re-opening
STRONG RECOVERY AFTER RE-OPENING ‘9 / SATs Ss , SATS
Slide 5: Open clubs and restrictions
Open clubs Open clubs with restrictions Imposed club closure 5
Slide 6: Infection control and capacity restrictions by country
• Infection control standard developed by consortium incl. Standard Norge • 1m distance at low intensity and 2m at high intensity training • Infection control standard developed by Virke Trening • Stricter regulations in certain municipalities, e.g., no indoor • 1m distance at low intensity and 2m a
Slide 7: Employees temporarily laid off
(1) 90 childcare employees in Norway still temporarily laid off 7
Slide 8: Visit development after re-opening by country
• Oslo almost opening with the same visit pace as • Visits over two weeks following the GX re-opening • Visit levels in Sweden on par with 2019 and last year, despite ban on indoor GX during the reached 99% compared to last year above 2020 opening weeks • Helsinki clubs have been open since end-Apri
Slide 9: Members visiting since re-opening
(1) Unique members who has visited a SATS club since re-opening (2) Same time period has been used as for 2021 9
Slide 10: Gender and age distribution of members
Gender distribution on par with last year despite restrictions on Age distribution on par with last year, with average age unchanged indoor GX in Oslo reducing female share somewhat Fewer women in the 30s and 40s reactivated due to GX restriction in Oslo the first re-opening weeks Higher share of ol
Slide 11: Members continue to spread their visits throughout the day
MEMBERS CONTINUE TO SPREAD THEIR VISITS THROUGHOUT THE DAY, ENSURING SOCIAL DISTANCING AND IMPROVING TRAINING EXPERIENCES 10% 4 8% 5 6% 4 4% > 2% 4 VISITS PER HOUR AS SHARE OF DAILY VISITS — JUNE 2019 — JUNE 2020 — JUNE 2021 SATS
Slide 12: Group training classes
> +5% +6% Note: The graphs illustrate total GX classes in week 25 and 26 for 2020 and 2021, respectively. The ban on indoor GX was lifted for Oslo on 15 June 2021. Clubs in Stockholm have remained open, but with restrictions. 12
Slide 13: Good air quality at the clubs
Good air quality at the clubs, secured by high- standard ventilation systems: 🌪️ • The air is replaced 5-6 times per hour 🌪️ • The rate of air exchange is significantly higher than in office landscapes and shopping centers 🌪️ • The air is replaced with new, fresh air (not recirculated air), and…
Slide 14: 7.5 million club visits in Norway since re-opening
7.5 million club visits in Norway since re-opening after first closure 410 cases of members testing positively after a club visit 2 cases of unknown route of transmission, but no confirmed transmission in the clubs (1) Measured through Gym Floor Net Promoter Score (NPS). Group Training NPS not inclu
Slide 15: Developing according to plan after re-opening
DEVELOPING ACCORDING TO PLAN AFTER THE RE-OPENING, EXISTING MEMBERS ARE RETURNING, AND NEW MEMBERSHIP SALES IS STRONG ENDORFINER VENTER’ Bli medlem pa sats.no e Elisa Finland © sss PPUUN BP 5 HAPPY SUMMER DEAL ELIXIA 8: TRANA 1 SOMMAR % = @ D>, 5 SATS
Slide 16: Member base development
• Member base development from Q1 to Q2 in a normal year is negative due to seasonality • Strong growth in paying member base after re-opening, both due to strong sales of new memberships and reduced freeze levels • High potential going forward, as the freeze level is still higher than normal due to
Slide 17: Personal training hours development
• Lower number of PT hours in the start of Q2 2021, but re-opening of clubs in the greater Oslo area and easing of restrictions supported demand • Underlying positive trend as members use PT more frequently, coupled with more hours per active PT • PTs have returned to work and recruitment position h
Slide 18: Key health metrics for our business are positive and strong
THE KEY “HEALTH” METRICS FOR OUR BUSINESS ARE POSITIVE AND STRONG VISITS ARE GROWING ACTIVE MEMBERS ARE VISITING US MORE FREQUENTLY MEMBER SATISFACTION IS IMPROVING NEW MEMBERSHIP SALES IS STRONG UNDERLYING YIELD DEVELOPMENT IS POSITIVE OUR PT AND RETAIL BUSINESS IS RECOVERING SOONER THAN EXPECTED
Slide 19: Playing an even more important role in improving public health
PLAYING AN EVEN MORE IMPORTANT ROLE IN IMPROVING PUBLIC HEALTH . y ‘ =) Sats ' KY-TAY
Slide 20: Public health and physical inactivity
• of the Nordic population does not reach the minimum recommended activity level per week1 • decline in members of Norwegian sports in 20202 • of young people globally are inactive3 • The right to health serves as the basis for achieving healthy lives through physical activity and sport • Physical i
Slide 21: Increasing visits and activating members and youth
• Increasing visits to SATS’ clubs through activating members • Activating youth to improve habits through “Youth activation program” • Introducing new concepts and offerings to make training convenient for more people, both at our clubs and digitally • Raising awareness of SATS’ positive contributi
Slide 22: Investing in growth
INVESTING INGROWTH KY-TAY
Slide 23: Club openings, acquisitions and relocations 2020-2021
Greenfields: • SATS Ursvik Entré (Q1 2020) • ELIXIA Tapiola (Q1 2020) • SATS Lyngby – Kanalvej (Q3 2020) • ELIXIA Iso Omena (Q3 2020) • SATS Häggvik (Q4 2020) • SATS Arninge (Q4 2020) • HiYoga Aker Brygge (Q2 2021) Acquisitions: • SATS Mölnvik (Q1 2020) • SATS Hamnen (Q1 2020) • Fresh Ås (Q4 2020) •
Slide 24: Signed club openings 2021-2023
• Fresh Lindeberg (Q3 2021) • SATS Saltsjöbaden (Q3 2021) • SATS Slemmestad (Q4 2021) • SATS Ensjø (Q4 2021) • SATS Kolbotn Torg (Q4 2021) • SATS Gamlestaden (Q4 2021) • SATS Näsby Slott (Q4 2021) • SATS Bromma Blocks (Q4 2021) • ELIXIA Circus (Q4 2021) • ELIXIA Valila (Q4 2021) • SATS Hinna (Q1 202
Slide 25: Growing within digital home training
• The market for digital training is maturing and growing • Visit stats at re-opening contradict • COVID-19 has accelerated permanent changes in people’s digitalization exercise habits out of gyms • Successful and inspiring track • Growing the club network at a high record from international players
Slide 26: Mentra by SATS launch plan
• MVP (minimum viable product) testing of product in 80 families in Norway and Sweden • Soft launch of marketing to build brand and product knowledge • Full commercial launch of Mentra by SATS in Q3 26
Slide 27: Financial review
FINANCIAL REVIEW KY-TAY
Slide 28: Outgoing member base development
• 8%-member reduction since pre-COVID level in Q2 2019 • Growth of 2% in the quarter, supported by re-opening and easing of restrictions across the Nordics • 4% reduction from Q2 2020, adjusted for the nine clubs sold in Denmark 28
Slide 29: ARPM and yield development
• Reported yield highly affected by inflated freeze during the quarter, but adjusted yield for paying members is returning to pre-COVID-19 • Especially strong development in yield for retail and personal training when members are returning • Solid development in contractual membership price past two
Slide 30: Revenue development
• Revenues “turned on” at re-opening of clubs, but still potential in unfreezing members as 75% of frozen members states COVID-19 as reason for freezing the membership • No compensation for fixed costs from the Norwegian government accrued for the period March to June, due to new restrictions in the
Slide 31: EBITDA development by country
• The most significant EBITDA reduction seen in Norway and Sweden, due to club closure in Norway and higher-than-normal freeze rate in Sweden, though the rate has improved during the quarter • Run-rate EBITDA will return to pre-COVID levels once the member base is regained, as the contractual price
Slide 32: Capital expenditures
• The majority of the club expansion is planned to open in the second half of 2021 • Less wear and tear at clubs during club closures, and maintenance capex1 kept at a responsible level (1) Maintenance capex consists of IT capex and club portfolio capex 32
Slide 33: Working capital and liquidity
• Negative working capital due to reduced payables to members at re-opening of clubs, partly offset by reduced government compensation accruals • Sufficient liquidity with cash balance of NOK 228 million and undrawn RCF amount of NOK 267 million (1) Liquidity includes cash balance and undrawn revolv
Slide 34: Net debt and leverage
• Net debt increase the past year solely due to EBITDA effect of COVID-19 and club closures • Historically shown strong deleveraging on back of EBITDA growth and high cash conversion • Increased short term flexibility with a new addendum to the revolving credit facility agreement 34
Slide 35: Outlook
OUTLOOK KY-TAY
Slide 36: Outlook
Strong new sales and member comeback after re-opening indicating increased demand The pandemic has increased the focus on public and personal health, resulting in more time/money allocated to this Continue to expand and grow our offering, both through an extended physical club footprint... ...and in
Slide 37: Disclaimer
• 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 in
Slide 38: Appendix
APPENDIX KY-TAY
Slide 39: Norway
NORWAY "4 ADJ. COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE (000) ARPM AND YIELD (NOK/MONTH) TOTAL REVENUES (MNOK) IMPACT OF IFRS 16 (MNOK) WM vietD I MEMBERSHIP REVENUES I OTHER YIELD Il OTHER REVENUES I GOVERNMENTAL SUPPORTING PACKAGES 20% 286 3503 98 139 51 205 147 -11%6| -28 Q2 2020 Q53 2020. Q4 2
Slide 40: Sweden
SWEDEN " ADJ. COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE (000) ARPM AND YIELD (NOK/MONTH) TOTAL REVENUES (MNOK) IMPACT OF IFRS 16 (MNOK) Q2 2020 Q3 2020 Q4 2020 QI 2021 Q2 2021 Tl MEMBERSHIP REVENUES I OTHER REVENUES 14% 10% CURR ADL) 3546 299 96 8% | 24 Q22020 Q2 2021 Q22020 Q2 2021 WM vietD I OTHE
Slide 41: Finland
FINLAND " ADJ. COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE (000) ARPM AND YIELD (NOK/MONTH) TOTAL REVENUES (MNOK) IMPACT OF IFRS 16 (MNOK) WM vietD I MEMBERSHIP REVENUES I OTHER YIELD Il OTHER REVENUES 19% +116% Kotla 16 50 13 -24 @2.2020 @3 2020 G4 2020 @12021 @22021 @22020 @22021 @22020 @22021 @220
Slide 42: Denmark
DENMARK "4 ADJ. COUNTRY EBITDA BEFORE OUTGOING MEMBER BASE (000) ARPM AND YIELD (NOK/MONTH) TOTAL REVENUES (MNOK) IMPACT OF IFRS 16 (MNOK) 9 SOLD CLUBS Mi veo I MEMBERSHIP REVENUES I OTHER YIELD Il OTHER REVENUES I GOVERNMENTAL SUPPORTING PACKAGES (429% CURR ADJ.) 15% (7% CURR ADL) 86 Q2 2020 Q3 202
Slide 43: Alternative performance measure definitions
Adjusted country EBITDA before Adjusted EBITDA before impact of IFRS 16 less allocation of Group Profit/(loss) before net financial items, income tax expense, depreciation EBITDA impact of IFRS 16 overhead and cost allocations and amortization Adjusted country EBITDA before Adjusted country EBITDA b
Slide 44: Key figures Q2 2021 and Q2 2020
Amounts in NOK million Q2 2021 Q2 2020 Number of clubs, EOP 254 252 Outgoing member base ('000s) 612 652 Average number of members per club 2 409 2 588 ARPM (NOK) 369 368 Yield (NOK) 257 240 Reported EBITDA (MNOK) 131 289 Adjusted EBITDA before impact of IFRS 16 (MNOK) -113 38 Adjusted EBITDA before
Slide 45: Reported versus excluding IFRS 16, Q2 2021
Reported Change Excl. IFRS 16 Amounts in NOK million Q2 2021 IFRS 16 Q2 2021 Balance sheet items - IFRS 16 Property, plant and equipment 683 0 683 Right-of use assets 4 129 4 129 0 Deferred tax assets 163 75 88 Prepaid expenses and accrued income 271 -66 337 Total assets 8 266 4 138 4 128 Equity 519
Slide 46: SATS
SATS